In a recent decision, the District Consumer Disputes Redressal Commission in Pune has levied a penalty of ₹12,000 on Paytm for the unjustified freezing of a grocery shopkeeper’s account.
Commission President Anil B Jawalekar and member Sarita N Patil observed that while Paytm eventually lifted the freeze on the account, it failed to provide any reasons for its initial action.
“Even though the opposite party defreezed the Paytm account of the complainant after two months, they failed to give a substantive reason for freezing the account initially. The complainant suffered significantly due to the actions of the opposite party, which amounts to a deficiency in service,” the order dated May 7 stated.
The grocery shopkeeper, Dinesh Bhawarlal Choudhary, reported that his account with a balance of ₹62,633.94 was inexplicably frozen on June 13, 2022. After numerous unsuccessful attempts to get a resolution through support tickets and complaints, Choudhary took the matter to the consumer court.
Although Paytm thawed the account following the complaint, Choudhary sought compensation for the mental distress and service shortfall he endured. The Commission noted that the account was immobilized for nearly two months, during which Choudhary diligently tried to resolve the issue with Paytm before seeking legal recourse.
“It is evident that the complainant made significant efforts to resolve the complaint with the opposite party, but they failed to provide a satisfactory solution,” the Commission said.
The Commission ruled that the lack of an explanation for the freezing constituted a service deficiency. Consequently, it awarded Choudhary interest on his account balance at 5 percent per annum for the period it was frozen.
In addition to the interest, the Commission ordered Paytm to pay ₹7,000 for mental harassment and ₹5,000 for litigation expenses, with the total amount to be paid within 45 days.
