Bangalore District Commission Holds Rental Agency Liable For Failure To Disclose Painting Charges Before Payment Of Rent

Brief facts:

The complainant, looking to rent a house, came across the website of an entity- Nestaway Technologies Pvt. Ltd. ('company'). While checking the houses on the company's website, the complainant got swayed by the pictures and amenities for a semi-furnished 1 BHK house located in Bangalore. As per the website, the rent was Rs. 13,000/- and security deposit was shown as Rs. 37,500/-along with a one-time boarding charge of Rs. 10,000/-.

Thereafter, the complainant visited the house and after mutual negotiations, the rent was finalised at Rs. 12,500/-. In an email dated 27.02.2025, Mr. Karthigeyan R from the company confirmed the rental charges of Rs. 12,500/-, refundable security deposit of Rs. 37,500/- and on boarding fees of Rs. 10,000/-. The complainant had made a total payment of Rs. 49,113/-.

On 15.03.2025, the company asked the complainant to consent to a leave and license agreement. As per the complainant, the agreement provided for a mandatory payment of Rs. 12,500/- as painting charges payable at the time of vacating the house. It was stated that neither it was mentioned on the website of the company nor in the email dated 27.02.2025 regarding these charges. The complainant raised this issue with the company which replied that the information was mentioned in the FAQ section.

The complainant then decided not to proceed with the Leave and License agreement and demanded a full refund of Rs. 49,113/-. However, the company made a partial refund of Rs. 39,113/- and retained Rs. 10,000/-. An email dated 22.03.2025 was sent by the complainant demanding Rs. 10,000/- but it has not been refunded. The complainant also served a legal notice dated 26.03.2025 demanding the refund but no reply was sent by the company. Hence, a complaint was filed by the complainant before the Bangalore district commission praying for refund of Rs. 10,000/-, compensations of Rs. 30,000/- and litigation expenses of Rs. 15,000/-

Despite service of notice, the company failed to appear and file its reply to the complaint.

Observations of the commission:

The bench took note of all the documents submitted by the complainant in support of his claim including the pictures of the company's website and houses listed on it, payment receipts, emails,legal notice, etc. It was observed that in the email dated 27.02.2025 giving the breakdown of all charges, the company has nowhere mentioned about the painting charges of Rs. 12,500/-. It was further observed that the company has clearly suppressed the painting charges which were not disclosed during initial discussions.

It was further observed that since the complainant never entered the house due to deceptive representation made by the company, he was entitled to full refund of Rs. 49,113/-. However, the commission granted a lower compensation as compared to what was prayed for.

Hence, the complaint was partly allowed with the following reliefs:

1. Refund of Rs. 10,000/- with interest @ 9% p.a.
2. Rs. 20,000 towards harassment and mental agony
3. Rs. 5,000 as litigation costs

Case Title: Mr. Vivekkumara vs Nestaway Technologies Pvt. Ltd.

Case Number: Complaint No. 125/2025

Date of Decision: 14.08.2025