Consumer panel imposes fine on investment firm-OxBig News Network

The Ernakulam District Consumer Disputes Redressal Commission has ordered an investment firm to pay an investor ₹4.68 lakh after collecting investments offering an exorbitant interest rate of 12.50% for five years.

The Commission comprising president D.B. Binu and members V. Ramachandran and Sreevidhia T.N. issued the verdict on a petition filed by Vignesh M., originally a resident of Tamil Nadu and now settled at Panampilly Nagar here, against Ramesh Viswanathan, chairman and managing director of Kakkanad-based Upayog Nidhi Limited.

According to the petitioner, the opposite party collected ₹1.60 lakh as recurring deposit and another ₹3 lakh as fixed deposit. However, later, the firm was closed down allegedly without returning the investments. However, the Commission observed that though the complainant claimed to have invested ₹4.60 lakh, he could produce documents for investments worth only ₹3.18 lakh.

In view of this, the opposite party was asked to return ₹3.18 lakh with the assured interest. Besides, the opposite party was asked to pay a compensation of ₹1 lakh and another ₹50,000 towards the cost of litigation.