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After online grocery delivery, Zomato pulls the plug on its nutraceutical business

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MUMBAI: Foodtech platform Zomato has shut down its Nutraceutical business. The development comes hours after the company decided to pull the plug on its grocery delivery business from 17 September, citing tough competition and moderate success.

In 2020, Zomato had started its nutraceutical business with the launch of health and fitness products. The decision comes at a time when the government is turning stricter about private label norms for marketplace businesses in the country. The online food marketplace had tapped into the nutraceutical opportunity related to food products that offer medical or health benefits last year, expecting it to be a large value driver for Zomato.

 Zomato had earlier announced its decision to stop its grocery delivery service effective 17 September, mainly on account of gaps in order fulfillment, leading to poor customer experience. It had launched the pilot grocery delivery service in July this year in select markets offering grocery delivery within 45 minutes to its customers. The company also said that it believes that its investment in Grofers will generate better outcomes for its shareholders than in-house grocery efforts.

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In an email to its grocery partners, the online food delivery platform  said, “At Zomato, we believe in delivering best in class services to our customers and largest growth opportunities to our merchant partners. We don’t believe that the current model is the best way to deliver these to our customers and merchant partners. Hence, we intend to stop our pilot grocery delivery service effective 17 September, 2021”.

The email mentioned that “store catalogues are very dynamic and inventory levels change frequently. This has led to gaps in order fulfillment, leading to poor customer experience”.

In the same time period, the express delivery model, with under 15 minute delivery promise and near perfect fulfilment rates has been getting a lot of traction with customers and expanding rapidly, the company further said in the email. “We have realised that it is extremely difficult to pull off such a delivery promise with high fulfilment rates consistently, in a marketplace model (like ours),” the mail said.

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Zomato has invested $100 million (around Rs 745 crore) for acquiring a minority stake in grocery delivery platform Grofers.

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Maharashtra panel orders Lodha to refund Rs 5 crore to homebuyers

Consumer court flags unfair practices in long-running property dispute case

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MUMBAI: In a sharp rebuke to one of India’s biggest real estate players, the Maharashtra State Consumer Disputes Redressal Commission has directed Macrotech Developers to refund nearly Rs 5 crore to a senior citizen couple, Uttam and Anindita Chatterjee. The ruling, delivered on March 13, 2026, calls out the developer for “deficiency in service” and “unfair trade practices”, bringing closure to a dispute that has stretched over a decade.

The case traces back to 2015, when the couple booked a 3-BHK flat at World Towers in Lower Parel for Rs 12.22 crore, with possession promised within a year. What followed was a series of changes that complicated matters. After deciding to exit the project, they were persuaded to shift to a 4-BHK in another development priced at Rs 8 crore, with delivery scheduled for 2018. However, within months, the price was allegedly increased to Rs 10 crore. After demonetisation reshaped the market, similar flats were reportedly being offered at lower prices, but the couple were not given the benefit.

Despite paying over Rs 2.83 crore, the couple neither received possession nor clarity. Instead, in 2018, the developer unilaterally cancelled the booking, retained part of the amount as earnest money, and argued that the buyers were investors rather than consumers. The commission rejected this claim, observing that casual references to “investment” do not take away consumer rights when the purchase intent is residential.

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The bench also held that the developer could not penalise buyers for payment delays while failing to meet its own delivery commitments. It noted the lack of formal documentation for revised terms and termed the prolonged retention of funds without delivering a home as exploitative.

As part of its order, the commission directed the developer to refund Rs 2.83 crore paid by the couple, along with interest at 10 per cent per annum, amounting to around Rs 2.12 crore. In addition, Rs 1 lakh has been awarded for mental agony and Rs 50,000 towards litigation costs, taking the total payout to over Rs 5 crore. The developer has been asked to comply within two months.

For now, the ruling serves as a reminder that in real estate, shifting terms and delayed promises can carry a significant cost.

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