You cancelled an order. Or returned a product. Or a service didn’t work. The company promised a refund in “5–7 working days,” but the Refund Not Processed by company.
It’s been weeks, maybe months. Emails are unanswered. Customer care gives scripted replies. Your money is stuck.
If this sounds familiar, you’re not alone. Thousands of Indians face this daily, from e-commerce platforms, airlines, ed-tech companies, fintech apps, gyms, and even hospitals.
Did you know? Denying a refund after a return violates your consumer rights in India. You can take legal action.
This blog explains how to escalate a refund issue legally, step by step, without the jargon or the stress.
When Is a Company Legally Bound to Refund?
A company must process your refund when:
- You cancelled within the allowed time.
- You returned the product in accordance with their policy.
- The service was poor or never delivered.
- The company cancelled the order itself.
- The payment failed, but the funds were still debited from your account.
Under the Consumer Protection Act, 2019, delaying or denying a valid refund amounts to:
- Deficiency in service
- Unfair trade practice
Meaning: you are legally entitled to escalation and compensation.
Common Excuses Companies Use (And Why They Don’t Hold)
Common Excuses vs. The Truth
- “Refund is in process.“
- The Reality: If they don’t give you a specific date, they are violating consumer rules.
- “It’s a technical issue.”
- The Reality: Their internal problems are not your responsibility. They still owe you the money.
- “Our policy doesn’t allow refunds.”
- The Reality: A company’s private policy cannot break Indian Law. If the law requires a refund, the policy doesn’t matter.
- “Wait 30 more days.”
- The Reality: Making you wait forever is illegal. Indian courts have ruled that companies cannot keep your money indefinitely.
Indian courts and consumer commissions have repeatedly held that companies cannot retain consumer funds indefinitely.
Step 1: Collect and Organise Proof (Very Important)
Before escalating, keep all evidence ready:
- Order ID / Booking ID
- Payment receipt or bank statement
- Cancellation confirmation
- Return pickup proof (if applicable)
- Email chats, WhatsApp chats, screenshots
This documentation will be your most potent asset later.
Step 2: Raise Written Complaint (Not Just Calls)
Phone calls don’t leave a record. Always escalate in writing.
Send an email to:
- Customer support email
- Grievance officer email (mandatory under law)
Use clear language:
Subject: Refund Not Processed – Order ID ______
I cancelled / returned the product on ____. As per your policy, refund was due by ____.
Despite follow-ups, the refund has not been processed.
Please resolve this within 7 days, failing which I will proceed with legal remedies.
Regards,
This step alone resolves many cases.
Step 3: Escalate to the Company’s Grievance Officer
Every company in India is legally required to appoint a Grievance Officer (especially e-commerce, fintech, ed-tech).
If the refund is still pending after contacting customer support, email the grievance officer with:
- All previous emails are attached
- Clear deadline (7–10 days)
Once this email is sent, companies take matters more seriously.
Step 4: Payment Gateway / Bank Chargeback
If you paid via:
- Credit Card
- Debit Card
- UPI
You can raise a chargeback or dispute with your bank.
Banks can reverse transactions if:
- Service was not delivered
- Refund was promised but not processed
Contact your bank within 30–90 days (depending on your bank). This is a powerful and fast remedy.
Step 5: File a Complaint on the National Consumer Helpline
Visit: https://consumerhelpline.gov.in
This is a government-run portal.
Once you file a complaint:
- The company gets official notice
- Many refunds are processed at this stage itself
It’s simple, free, and effective.
Step 6: File Case in Consumer Court (e‑Daakhil/e‑Jagriti)
If the refund is still not processed, the strongest legal remedy is to file a case in the Consumer Court.
You can file the case online via: https://e-jagriti.gov.in/
You can claim:
- Refund amount
- Interest in delay
- Compensation for mental harassment
- Litigation cost
Many companies issue refunds immediately upon receiving a consumer court notice.
What NOT to Do
- Don’t keep waiting endlessly
- Don’t rely only on phone calls
- Don’t abuse customer care staff
- Don’t give up thinking “nothing will happen.”
The law favours consumers who act calmly and legally.
Your Money Is Not Charity
If a company has taken your money, it must either deliver the service or refund it. Keeping consumer money without justification is illegal.
Escalation is not aggression. It is your legal right.
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Disclaimer:
This article is published for general legal awareness and informational purposes only, and should not be construed as legal advice or a solicitation to act.
About the Author:
Joginder Poswal is an advocate enrolled with the Bar and practising law, specialising in cyber law, criminal law, and corporate compliance.
For more information, please refer to the contact details provided on this website.