Chennai Post Office Fined with ₹15,000 Fine Over Minor 50-Paise Dispute

In a striking legal battle over seemingly trivial sums, a consumer dispute involving just 50 paise has led to a significant court ruling in Chennai, reinforcing the weight of consumer rights in India. Manasha, a resident of Gerugambakkam, found himself at the centre of this unusual controversy at the Polichalur post office.

The 50-Paise Dispute  

The incident unfolded on December 3, 2023, when Manasha attempted to send a registered letter costing 30 rupees. After paying, he was owed 50 paise in change, which the post office failed to return, suggesting that the amount was too insignificant to settle. Dissatisfied with the dismissal, Manasha opted to pay the exact fee via UPI, but the transaction was unsuccessful due to a reported technical fault with the post office’s system.

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Feeling aggrieved by the denial of his payment options and the casual rounding off of amounts, Manasha escalated the issue to the District Consumer Disputes Redressal Commission. He argued that such practices could contribute to broader financial discrepancies, affecting everything from black money circulation to GST revenue.

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The Post Office’s Defence  

In its defence, the post office claimed that it was standard practice to not issue amounts smaller than 50 paise, citing software settings that rounded transactions to the nearest rupee. They also reported issues with their digital payment system, specifically the “Pay U” QR code, which had been malfunctioning since November 2023 and was discontinued in May 2024.

The Verdict  

After deliberation, the commission ruled in favour of Manasha, declaring that the post office’s actions constituted an unfair trade practice under Section 2(47) of the Consumer Protection Act, 2019. The post office was ordered to refund the disputed 50 paise and pay a fine of ₹15,000 for the inconvenience and potential legal implications caused.

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