Consumer rights panel orders repayment of investment

The Ernakulam District Consumer Disputes Redressal Commission has ruled in favor of a consumer who was allegedly a victim of investment fraud by a financial institution. The consumer was ordered to be refunded their investment, in addition to receiving ₹1 lakh as compensation and legal costs. The Commission found that the financial institution had engaged in deceptive practices, claiming to be a cooperative society with an RBI license, when in fact they were not registered as claimed. The consumer had invested ₹5.88 lakh and taken membership for ₹5,000 with the promise of assured returns, which were not delivered. The Commission concluded that the financial institution’s actions constituted unfair trade practices and caused financial losses and mental distress to the consumer.