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Merchant Penalties

The penal action that Paytm Mall is authorized to take in case a Seller is found to be committing fraud or using unfair means to gain proceeds from Paytm Mall.

 Acts constituting breach of Contract / Law  Penal Provisions**
Self-Ordering / Seller Buyer Collusion Penalty imposed will be = 3*GMV + cash back + 15000/(Litigation expenses)
Dispatch/Delivery of Empty Box or Fake/Duplicate/Defective/Partial/Damaged/Used/Wrong Product or Product of lesser/inflated value Penalty imposed will be = GMV + Cashback + Claim (If paid) + 15000/(Litigation expenses)
MRP issues Penalty imposed will be = GMV + Cashback + 15000/(Litigation expenses)
Penalty for SLA breaches         Penalty = [3% of selling price],
Penalty for Seller Cancellation         Penalty = [7% of selling price],
Penalty post-SLA is breached & if the order is Auto-Cancelled


      Penalty [calculated on Selling price]

Penalty = [3% SLA breach + 7% cancellation ]

**These charges are exclusive of taxes.

Merchant Cancellation and SLA Breach penalty

All the orders which are cancelled due to a seller-related issue are liable for penalty charges. SLA breach penalty/Cancellation penalty structure is as follows:

The minimum penalty amount will be Rs. 35 on both SLA Breaches and Cancellations by the Seller.

Note: The applicable GST will be deducted along with the penalty amount

*Not applicable to offline, international, cars & bikes & FC aligned sellers. 

How penalties are levied:

If any seller is found to be involved in heinous malpractices / unfair trade practices / gross violation of contract, ‘Paytm Mall’ may impose/deduct penalty of Rs. 10 Crores or an amount equivalent to annual Marketplace GMV, whichever is higher as damages from such Seller and forthwith terminate the Agreement without assigning any reason thereof. Adding on, the SLA breach & Cancellation penalty is not applicable to offline, international, cars & bikes & FC aligned sellers.