The Central Consumer Protection Authority (CCPA) has imposed a ₹5 lakh penalty on Eureka Forbes Ltd following the discovery of 5,008 consumer grievances related to water purifiers and after-sales service. According to reports from Mint, the consumer watchdog found that several claims concerning annual maintenance contracts (AMCs), warranty benefits and refund policies were misleading or inadequately disclosed. The CCPA has directed the company to strengthen disclosures to consumers, provide do-it-yourself videos or schematics for minor repairs, ensure availability of genuine spare parts, and periodically review grievance resolution processes.
The regulatory action affects Eureka Forbes, which holds approximately 40% market share in India's water-purifier segment, as per Crisil Ratings. According to the company's Q1FY27 results reported by Mint, the water-purifier business recorded high-teens revenue growth, driven by double-digit volume growth and pricing. Overall revenue rose 15.3% year-on-year to ₹700.8 crore in the quarter. The company is owned by private-equity firm Advent International.
The CCPA's preliminary inquiry revealed that some consumers were provided product and service details at purchase that differed from actual AMC terms. As reported by Mint, the regulator examined allegations that technicians demanded payments amounting to around 50% of the product's value despite such charges allegedly being contrary to AMC terms. The authority scrutinized claims for unlimited service visits, annual filter replacement, free spare part replacement, one-time consumable replacement, and 24-hour service response, finding these terms were not adequately disclosed to consumers.
The CCPA order cited specific consumer complaints to illustrate service concerns. According to Mint, in one case, a consumer alleged that a technician sought payment for filter replacement despite having an AMC. Another customer was told a ₹530 service charge would apply despite having an AMC. Some consumers reported service partners delayed part replacement even after providing product details, causing AMC periods to expire without essential components being replaced. In one complaint, a consumer stated that despite booking a time slot through the company's app, the technician failed to appear at the scheduled time.
The CCPA rejected Eureka Forbes' defense regarding timely complaint resolution, noting that the company's submissions did not establish satisfactory resolution of grievances. As reported by Mint, the company had claimed its 'Gatiman' programme resolved 94% of complaints within two days from the National Consumer Helpline's 300-400 monthly complaints. The Indian water-purifier market is projected to grow from $3.95 billion in 2026 to $7.50 billion by 2034, at a compound annual growth rate of 8.4%, according to IMARC Group.
