Court orders post office to pay 2,999,900% compensation to Chennai consumer for rounding off 50 paise excess amount

A consumer dispute in Chennai involving a 50-paise coin, still recognized as legal tender, has resulted in a staggering 2,999,900% return for the litigant. The District Consumer Disputes Redressal Commission ordered a local post office to refund the amount along with a fine of Rs 15,000.

Background of the Dispute

The issue began on December 3 of last year when Manasha, a resident of Gerugambakkam, visited the Polichalur post office to send a registered letter. He paid Rs 30, expecting to receive 50 paise in change since the postal fee was Rs 29.50. However, when he asked for his change, he was informed that the system automatically rounded the amount to Rs 30.

Manasha attempted to pay the exact fee using UPI, but the post office declined, citing a technical problem. He raised concerns in his complaint to the commission, stating that the practice of rounding off transactions could result in significant financial losses, including black money and a decrease in GST revenue for the government.

Post Office's Response

The post office explained that any amounts less than 50 paise were generally "ignored," and the software had been designed to round off such amounts to the nearest rupee. Regarding Manasha's UPI payment attempt, the post office clarified that the "Pay U" QR digital payment method had been malfunctioning since November 2023 and was discontinued in May 2024.

Commission's Decision

After reviewing both sides of the case, the commission concluded that the post office had admitted to "overcharging" due to a software glitch. This practice was deemed an unfair trade practice under Section 2(47) of the Consumer Protection Act, 2019. The ruling highlights the importance of consumer rights and the responsibility of service providers to ensure fair practices.