Holiday membership for Rs 1.1 lakh promised 4-5 star hotels with meals: Customer gets 3-star stays, court orders full refund with 9% interest

A Chandigarh consumer commission has directed Park Club International Pvt Ltd to refund Rs 95,000 to a customer who paid Rs 1.10 lakh for a five-year holiday membership but was allegedly offered lower-category hotels and asked to pay additional charges during his stays.

The Chandigarh District Consumer Disputes Redressal Commission also awarded Rs 15,000 towards compensation for mental agony, harassment and litigation expenses. The order was passed on September 1, 2026.

Why did the customer complain against Park Club International?

According to the commission order, Mandeep Kumar Garg purchased a five-year holiday membership from Park Club International, formerly known as Grand Royaltaj Club International, for Rs 1.10 lakh on February 6, 2024.


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The membership promised 36 nights at 4-5 star properties across India for four adults, along with breakfast, dinner and other facilities.

After the company changed its name, Garg sought clarification about his membership and was assured that it would continue.

He later requested two rooms at a five-star property in Manali. However, he alleged that the company refused to provide the requested accommodation and instead asked him to upgrade his membership plan.

The company subsequently arranged accommodation at a three-star property in Manali.

What happened when he sought hotel bookings in Kasauli?

Garg later sought bookings in Kasauli but alleged that Park Club International offered only one- or two-star properties, despite his membership promising stays at 4-5 star hotels.

He also claimed that the company demanded additional charges and failed to provide the promised breakfast and dinner.

On one occasion, the company confirmed a stay at The Fern Surya Resort in Kasauli but allegedly demanded Rs 2,000 as a non-member charge. Garg said breakfast and dinner were also not provided, forcing him to spend Rs 4,000 on dinner.

During another stay in Kasauli, he incurred a further Rs 2,216 towards dinner.

Why did the consumer commission find deficiency in service?

Park Club International did not appear before the commission despite being served notice and was proceeded against ex-parte on January 22, 2026.

The bench comprising President Pawanjit Singh and member BM Sharma said Garg had supported his complaint with documents including the membership details, payment proof, membership ID, correspondence, hotel booking confirmations, meal bills and legal notice.

“The complainant has supported his allegations by way of his duly sworn affidavit and documentary evidence, including the membership details, invoice/proof of payment, membership ID, correspondence exchanged with the OPs, hotel booking confirmation, bill for expenses incurred towards meals, and legal notice,” the commission observed.

The bench noted that the evidence remained unrebutted because the company did not appear before the commission.

Club failed to provide promised 4-5 star hotel stays

The commission found that Garg had paid Rs 1.10 lakh based on representations that he would receive accommodation at 4-5 star properties, along with breakfast, dinner and other facilities.

“From the evidence available on record, it is duly established that the complainant paid a sum of Rs.1,10,000/- to the OPs for a five-year holiday membership on the basis of representations that he would be entitled to accommodation in 4-5 star properties, along with breakfast and dinner and other promised facilities,” the bench said.

It added that the company “failed to provide the services in accordance with the terms and representations made at the time of obtaining the membership”.

Commission flags lower-category hotels and extra charges

The commission specifically highlighted that Garg was repeatedly offered accommodation below the category promised under his membership.

“It is particularly significant that on several occasions the OPs offered/provided accommodation in 3-star or lower-category properties, despite the complainant's entitlement to 4-5 star properties,” the bench observed.

It also noted that the promised meal plan was not provided during the stays and that additional charges were demanded from the customer.

“The OPs also failed to provide the promised meal plan on the stays in question and demanded additional/non-member/utility charges from the complainant,” the commission said.

The bench further found that the company failed to honour its representation regarding timely and assured bookings, despite Garg making his requests well in advance.

Why was the refund limited to Rs 95,000?

Although the commission found deficiency in service, it noted that Garg had used the membership for stays in Manali and Kasauli.

Considering the services he had already availed, the commission deducted Rs 15,000 as a reasonable value for those services from the Rs 1.10 lakh membership fee. It therefore directed Park Club International to refund Rs 95,000.

How much compensation must the holiday club pay?

The company was directed to refund Rs 95,000 along with 9% annual interest from September 9, 2025, the date on which the complaint was filed.

It was also ordered to pay Rs 15,000 towards mental agony, harassment and litigation expenses.

The commission directed the company to comply with the order within 45 days of receiving its certified copy.

If it fails to comply within the stipulated period, the principal amounts will carry 12% annual interest from the date of the order until realisation.


Inputs from TOI