Delhi HC Directs DOT To Immediately Block Mobile Numbers Of Unscrupulous Persons Collecting Money By Duping Customers Of AJIO Brand

While considering a case which demonstrates how the cloak of digital platforms is being used to dupe innocent customers, by misusing an established brand name, the Delhi High Court granted an interim injunction restraining the Defendants and any one acting for and on their behalf from using the mark ‘AJIO’ or in any manner sending any communications whatsoever to any customers or public for further collecting monies into any of the bank accounts including any fresh bank accounts to be opened by them.

The High Court held so while deciding on a suit filed by Reliance Industries Limited and Reliance Retail Limited seeking to protect the trademark ‘AJIO’, its logo and other formative marks.

A Single Judge Bench of Justice Pratibha M Singh observed that “Owing to the familiarity and reputation of the AJIO name and brand, whenever any customer receives such letters accompanied with scratch cards purportedly issued by the Plaintiffs, it is quite natural for such customer to believe the same to be true. Thus, the request for deposit of some initial fees to be eligible to avail of the scratch card offer is quite a deceptive request, which may be acceded to”.

Advocate Sidharth Chopra appeared for the Plaintiff, whereas CGSC Harish Vaidyanathan Shankar appeared for the Defendant.

The brief facts of the case were that the Plaintiff, claiming to be the largest private sector company in India, is engaged in a wide range of business including textiles, polyester, energy, telecommunications, entertainment, and digital services. The e-commerce platform ‘https://www.ajio.com’ was stated to be a business to consumer (B2C) platform launched in 2016 along with the mobile app ‘AJIO’. On the said e-commerce platform consumers can order and purchase goods online directly from the Retailer. The case of the Plaintiffs is that ‘AJIO’ is one of the most popular brands in India which is evident from the three million customers, who visit the marketplace and 3 million apps downloads of the mobile app. Recently, the Plaintiff learnt of several persons fraudulently having sent various communications under the name and style ‘AJIO Online Shopping Pvt. Ltd.’ A perusal of the letter would show that the recipients of these letters are being lured into believing that the said recipients had won prize money along with a scratch card coupon. The said letter also mandates terms and conditions to be followed by the user to claim the prize and reward in the scratch card. The preparators of these scam/schemes then proceed to collect money from innocent customers under the garb of payment of advance government taxes and processing fees.

The way the Defendants are promoting and hearing customers to deposit the money is by specifically calling upon the recipients not to use the Plaintiffs’ customer care number but to only use the numbers which are provided by them. Upon further investigation, it was revealed that the persons who were carrying out these fraudulent and illegal activities were using various mobile numbers and bank accounts to receive the deposits. Accordingly, the Plaintiffs has filed the suit impleading the fraudulent persons/company along with the mobile numbers operated as also bank accounts as Defendant.

After considering the submission, the Bench found that there appears to be a large-scale operation carried out by unscrupulous individuals with the intention of collecting money under the name of ‘AJIO’ and ‘AJIO Online Shopping Private Limited’.

The Bench also observed that the letters and the scratch cards, etc., are so convincing that any customer or recipient would be unable to distinguish between the Plaintiffs' communications and those of the said entity or person.

“The large number of letters that appear to have been received shows that there are several persons and may be even entities who are working in close collaboration with each other to illegally make monetary gains. Owing to the experience in similar cases, it is also possible that bank accounts have been opened without giving the true name of the persons opening the same”, added the Bench.

The High Court therefore elucidated that the Plaintiffs have clearly made out a prima facie case for grant of an ex-parte ad-interim injunction, as the balance of convenience is also in favour of the Plaintiffs as also the larger public.

Stating that irreparable injury would be caused to the general public if an order of injunction is not granted, the High Court directed the telecom service providers i.e., Defendants to immediately block all the mentioned mobile numbers and to place on record entire documentation available with them in respect of the identity of the individuals who had registered the mobile numbers.

The DoT shall issue blocking orders in respect of all these mobile numbers which shall be made non-operational with immediate effect, added the Court.

Cause Title: Reliance Industries Limited vs. Ajio Online Shopping Pvt Ltd. [Neutral Citation: 2023: DHC: 6499]

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