Time runs out for timeshare resorts

Timeshare resorts were a booming business a few years ago. The concept failed because their owners apparently did not intend to honour their commitments to the consumers who paid money up-front and booked time in resorts. It was also alleged that after building these resorts, consumers holding valid timeshare were told that the resort was unavailable while walk-in customers were provided rooms because they paid cash. An example of such unfair practices is available in the case of Deputy General Manager, Orphic Resorts Ltd and another vs Usha Jain and another in the National Consumer Disputes Commission.

Jain had a confirmed timeshare in Bhimtal for one week every year for a period of 10 years on payment of Rs 60,600. In 2000, she did not receive confirmation of the reservation she had requested for. In 2001, booking for the month of May was not acknowledged despite a month's notice to the company.

Jain approached the District Forum at Delhi. The forum passed asked the company to refund the sum of Rs 60,600 with 12 per cent interest from December 1999 to the date of payment. The company challenged this order in the State Commission, which found no merit in the appeal but reduced the interest from 12 per cent to 9 per cent.

The company took the matter to the National Commission, arguing that it never received the letters from Jain, hence the bookings could not be confirmed. The commission said Jain had evidence of having sent the letters.

The commission noted that Jain had written a letter to the company asking for refund of Rs 3,000 paid as service charges, which was not even answered by the company. The case was dismissed without going into its merits as no interference was required by the commission in the lower courts' orders.

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