Hemant Wadekar had taken a time-share membership of Mahindra Holidays & Resorts (MHR). Members could enjoy holidays at any MHR resort in India or abroad. Mr Wadekar enrolled for a 25-year membership by paying Rs2,08,985. He tried to avail some facilities but was refused. Aggrieved, he requested cancellation of the membership and sought a refund. MHR informed him that the refund would be subject to deductions of Rs1,25,391 as cancellation charge, Rs7,500 as Resort Condominiums International enrolment charge and Rs8,000 for food vouchers. The refund offered, after deductions, came to Rs68,094. Mr Wadekar filed a complaint with the district consumer forum alleging deficiency in service. The forum directed MHR to refund the entire membership fees of Rs2,08,985, along with 9% interest, compensation of Rs10,000 and cost of Rs1,000.
MHR challenged the order with Maharashtra State Consumer Disputes Redressal Commission which dismissed the appeal. MHR then approached NCDRC (National Consumer Disputes Redressal Commission). Mr Wadekar claimed that the rules had not been shared. NCDRC observed that when the rules are not communicated, merely signing that the rules had been read would have no meaning. NCDRC modified the order and directed MHR to refund the membership charges after deducting the admission fee. The rest of the order for compensation and costs was upheld.