Couple invited for free holiday, movie tickets & salon voucher, persuaded to buy Rs 65,000 membership instead; court orders Rs 1.06 lakh, plus 9% annual interest on refund

A Delhi couple who alleged they were persuaded to purchase a holiday membership after being promised complimentary hotel stays and other benefits has secured relief from a consumer commission. The District Consumer Disputes Redressal Commission-I, North District, Delhi, directed Royalty Holidays International to refund Rs 65,000 to the couple with 9% annual interest. The company was also ordered to pay Rs 30,000 as compensation for mental harassment and Rs 11,000 towards litigation expenses.

According to the consumer commission's order, the couple received calls in June 2025 informing them that they had been selected for complimentary benefits. These allegedly included a three-night, four-day holiday stay, two PVR movie tickets and a salon voucher. The couple was invited to a promotional event at the Hyatt Centric Hotel in Janakpuri, Delhi.

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The couple alleged that the promised vouchers were not provided. Instead, representatives at the event persuaded them to purchase a holiday membership by showcasing packages that included stays at luxury hotels and resorts.

The original membership was priced at Rs 92,000 and offered a six-night, seven-day stay over a five-year period. The couple initially declined the offer but later agreed to a revised package costing Rs 72,000, including interest.

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They paid the amount through a two-year EMI scheme using a credit card. The commission, based on the documents placed on record, found that payment of Rs 65,000 stood proved.

Couple alleges holiday membership terms were different

The couple told the commission that they were made to sign the agreement hurriedly and that several of the terms did not match the assurances given during the promotional meeting.

One of their key complaints concerned the annual maintenance charge. They alleged that representatives had told them the AMC would remain fixed at Rs 8,500 and would not be payable if they did not use the membership facilities.

However, the written membership terms stated that the annual maintenance charge could be revised and was payable every year.

The couple also claimed that they had been led to believe they could stay at any four-star or five-star hotel or resort across India. They later found that the membership was restricted to a limited list of destinations and accommodation options, they alleged.

Couple seeks cancellation soon after receiving membership documents

After receiving the membership documents, the couple emailed the company on June 19, 2025, asking for cancellation and a refund. They also submitted a letter at the company's office the following day.

The commission noted that Royalty Holidays International did not appear before it despite being served and was proceeded against ex-parte. As a result, the couple's allegations remained unrebutted.

The bench also examined the cancellation clause in the agreement. The clause provided for deductions ranging from 30% to 100%, depending on when the customer sought cancellation.

Consumer commission flags fixed AMC assurance

The bench, comprising President Divya Jyoti Jaipuriar and member Harpreet Kaur Charya, noted that the couple had communicated their intention to cancel shortly after receiving the welcome letter.

The commission said the couple's email made clear that they wanted to withdraw from the agreement and had raised concerns about the circumstances in which it was signed.

On the annual maintenance charge, the commission said: "The OP, by representing to the Complainants that a fixed Annual Maintenance Charge (AMC) of Rs.8,500/- would remain payable throughout the tenure of the membership, induced them to enter into the agreement while having no intention of honouring such representation."

The commission held that the representation regarding the fixed AMC, followed by the company's refusal to refund the money, amounted to an unfair trade practice and deficiency in service.

It further said: "Thus, the OP's act of representing that the AMC would remain fixed at Rs.8,500/- for the entire tenure of the membership, solely to induce the Complainants to execute the agreement, and thereafter failing to honour the said representation and refusing to refund the amounts paid by the Complainants, constitutes both an unfair trade practice and a deficiency in service under the Consumer Protection Act, 2019."

The commission said the couple had suffered financial loss, mental agony and harassment, while the company had retained the money paid by them.

Royalty Holidays International ordered to refund Rs 65,000

The consumer commission directed Royalty Holidays International to refund Rs 65,000 to the couple along with 9% annual interest from June 15, 2025, until the amount is realised.

The company was also ordered to pay:

• Rs 30,000 as compensation for mental harassment and agony
• Rs 11,000 towards litigation expenses
• The total awarded amount within 30 days of receiving the order

The commission further directed that if the company fails to comply within the stipulated 30-day period, it will have to pay 9% annual interest on the entire awarded amount from the date of the order until realisation.


Inputs from TOI