Consumer complaint

Club Mahindra membership no.227831
Mr Jayant Mahabal and Mrs Jyotsna Mahabal


We have fallen prey to marketing gimmick of Club Mahindra who call people and offer free holiday and invite people to visit their office to collect the free holiday voucher.

We visited their office at R mall on 14/4/2006 to collect the holiday voucher and were compelled to attend a presentation of their holiday package. While making presentation we were coaxed to buy a membership of white studio apartment for 25 years by making offer as package cost of Rs. 141700 valid for today only. We were also offered additional free holiday, food coupons etc which were also reportedly valid for that day only. Despite our request we were not allowed any time to think about the offer as their salesperson immediately visited our home to collect initial payment of Rs.21255.We were also offered option to pay balance amount in 60monthly installment without revealing that this would result in increasing the package cost to Rs. 181995, and their sales person also collected our credit card authorization for 60 monthly installments of Rs.2679each

We were not given any written confirmation, copy of the agreement etc., membership rules etc and were informed that our membership details will be mailed to you later. We were also not given any brochures or explained that we have an option to cancel the membership in 10 days and get full refund.

First communication from the company for congratulating us was received vide their letter dtd 3/5/2006 which was 17/18 days after our registration and their booklet of membership rules was received on 12/5/2006 i.e. after 27 days from registration.

After reading the booklet was noticed that
1) their sales person had misrepresented the clause regarding gifting of holidays to our married/unmarried major daughters as the company charges a fee for gifting holidays to children above 18 years.
2) It was also noticed that we were entitled for full refund if we cancel the membership within 10 days of registration. However this was not informed to us by their sales person in his presentation and company sent the rules after the period of 10days, which was received after 27 days
Immediately after getting membership rules i.e on12/5/2006 itself we sent email to company seeking cancellation of membership which was based on false promises given by their sales person, and sought immediate refund of initial payment of Rs. 21255. However there was no response.
Upon follow up over phone, by letters, e mails on several occasions their representative visited our home and tried to convince us to continue membership and also issued an apology letter. However by this time we had realized that their promises are empty. Upon further follow up for refund they advised us that no refund is due to us as their cancellation charges are 85020 being 60% of cost of membership +RCI enrollment charges of Rs 6000. We immediately advised that this is not acceptable to us as membership was given on the misrepresentation of their employee.

The company subsequently kept on following up for continuation of membership as there was no refund due from them However on their email request to try a holiday, we tried to plan a holiday as their free holiday coupon was to expire, however we were advised that rooms are not available. Thus they were neither refunding nor allowing us to use their facilities. Thus this appears to be classic way of cheating.
The company subsequently kept on following up by sending demand letters for the instalment amonts DUE from us conveniently ignoring that we had sought cancellation of membership and refund of initial payment of 21255 way back on 12/5/2006. Finally on16/7/2008 they advised us that as there was default in payments our membership is cancelled as per conditions of contract

Thus this is a classic case of cheating by a reputed group like Mahindra.we seek the help of the forum to get refund of Rs.21255 with interest for6 years as we have not availed any services of the company.
J.J.Mahabal