Kerala HC drops Mohanlal from Manappuram Finance consumer case over gold loan ads

New Delhi: The Kerala High Court has quashed consumer forum proceedings against Malayalam actor Mohanlal in a dispute linked to advertisements for Manappuram Finance, ruling that a brand ambassador cannot be made liable in an ordinary consumer complaint unless a “direct link” to the transaction is established.

Justice Ziyad Rahman AA held that mere appearance in an advertisement does not make an endorser responsible for alleged unfair trade practice or deficiency of service under the Consumer Protection Act, 2019, unless personal involvement or a clear nexus with the disputed transaction is shown. The court also noted that an endorser’s liability under the Act is primarily addressed through proceedings under Section 21, which deals with misleading advertisements. 

The case arose from a complaint by borrowers who said they shifted their gold loan from Catholic Syrian Bank to Manappuram Finance after being promised a lower interest rate, allegedly promoted through ads featuring Mohanlal. 

The complainants claimed they were assured interest at 12% per annum, but were charged a higher rate when they attempted to close the loan and retrieve their pledged gold. They sought refund of the excess interest and compensation of Rs 25 lakh.

Mohanlal challenged orders of the Thiruvananthapuram District Consumer Disputes Redressal Commission and the State Consumer Commission, which had declined to drop him as a party. The High Court observed that the complaint referred to the actor only as a brand ambassador and the pleadings themselves attributed the assurance on interest rate to the finance company, not the endorser.

The court clarified that the complainants are free to continue their case against Manappuram Finance, and if they have a grievance specifically about misleading content in advertisements, they may approach the competent authority under Section 21 of the Act.