The Ernakulam District Consumer Disputes Redressal Commission has ordered a finance company, which promised high returns on deposits but deceived a depositor, to pay ₹17.79 lakh to the complainant.

The owners of Popular Finance were directed to pay the amount to Mary George from Thiruvananthapuram, who had filed a complaint with the commission, said a communication here.

According to the complaint, Popular Finance had promised a 12% return on deposits. Taking this promise seriously, the complainant deposited ₹16,59,000 with the company. Initially, the interest was credited to the complainant’s account, but the payments were later disrupted. The depositor later learned that Popular Finance had been accepting deposits without the permission of the Reserve Bank of India.

The owners of Popular Finance were later arrested by the police, and the office was seized and sealed. However, the complainant did not receive either the interest or the deposited amount as promised by the company.

The complainant submitted that the operations of Popular Finance had deficiencies in service, were unjust, and caused mental agony. On these grounds, Popular Finance was bound to provide compensation.

The commission bench, headed by D. B. Binu and comprising V. Ramachandran and T. N. Sreevidya, made it clear in the ruling that entities that deceive customers by collecting deposits and making huge financial gains should be dealt with strictly.

The bench ruled that Popular Finance must pay the complainant ₹16,59,000 as the deposited amount, ₹1 lakh as compensation, and ₹20,000 as transaction costs within 45 days of the order. Advocate M. J. Johnson appeared for the complainant.