Chanakya Finance Corporation that cheated gullible consumers
Has been snubbed and rapped by three consumer forums!
Hundreds of gullible consumers in Karnataka had deposited various sums of money with the Chanakya Finance Corporation (Managing Partner L. Nanjunderaje Urs) and its eight partners including Rajeev Lochana. It failed to pay them their deposited amounts with interest as promised.
The consumers finally complained to the district consumer forum which ordered them to pay up the amounts with interest at 12 per cent. When they failed to follow this order the consumer forum sentenced the Corporation and its partners to undergo three years of jail time and to pay the penalty of Rs. 10,000 in each case! It also attached the moveable and immoveable properties belonging to the Finance Corporation to be used to repay the complainants!
The Finance Corporation went in appeal against this order to the State Consumer Commission which found no reason to revoke this order and dismissed their claim. They next went in appeal to the highest consumer court – The National Consumer Disputes Redressal Commission in New Delhi urging it to revoke the order about jail time. They said that since their movable and immovable properties had been attached to enable repayment of money due to the consumers, there was no need for imprisonment as well.
But they were not in luck in the Delhi court either as it dismissed their appeal! They will now have to pay back all the consumers they cheated, undergo unpleasant jail time and pay up the penalty of Rs. 10,000 for each case!
Magic sometimes lands up in the consumer courts, to show that there may after all be the God of Small Things around!