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Non-Refundable Deposit

I went for a cable installation, he charged me with 1000/- non-refundable deposit.
I went to my drinking water supplier, he charged me with 200/- non-refundable deposit.

The service provider has to incur a certain cost for all the hardware, wiring he installs at the client site. The landlord entrusts the tenant with the furniture, fittings and the structure of his house. The deposit is the amount paid upfront by the client to build up the trust between the two parties.

Hence by the very definition the moment the business of the client terminates, the deposit should be refunded (or adjusted with the outstanding)
A non-refundable deposit on the other hand disappears into thin air the moment you paid it. You cannot complain for the poor services, you cannot terminate your contract… because you will stand to lost the hefty deposit.

For all practical purposes Non-Refundable Deposit is actually the euphonium for “Installation Charges”. You always think the amount was a security deposit until you decided to lay claim on it.

In certain cases the situation is close to a fraud. Many Landlords refuse or dilly-dally when asked to refund the security paid by the tenant. In Bangalore where this security can be as high as 10months rent, it really pinches. What do you think is the solution?

1 reply on “Non-Refundable Deposit”

A security deposit is refundable at the termination of the contract. A non-refundable deposit is not.

The solution – buy your own house or don’t shift places ill the term of the contract is over. Popularly referred to as “pagdi” in Mumbai.

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