Settl faces tenant backlash over delayed security deposit refunds

BENGALURU: Settl, a co-living space startup operating in Bengaluru, Hyderabad, Gurugram, and Chennai, has been delaying the refund of security deposits to multiple former tenants, TOI has learnt. The delays, which have left several tenants frustrated, persisted for months, with some cases dating back as far as January 2024 allegedly. Individual amounts owed are said to be as high as nearly Rs 80,000. “The company keeps telling us that they will pay on the 10th of a month but never honour these promises. The customer care has blocked some of us,” one former tenant of a Settl property told TOI. The lack of timely refunds has prompted affected individuals to seek alternative avenues to address their grievances, including social media and consumer forums.
Founded in 2020, Settl is backed by prominent investors such as Gruhas, co-founded by Nikhil Kamath, and Anthill Ventures. The startup offers a range of co-living solutions, including shared living spaces, individual rooms, and fully furnished apartments equipped with modern amenities.
Responding to TOI’s inquiry about the delays, a Settl spokesperson explained that the company is in the process of acquiring several co-living companies and their properties. One such acquisition involves Hyphen, a co-living operator facing operational and financial challenges. “While we took over operational control of Hyphen’s properties starting August-September last year, the full acquisition of the company, including its books of accounts, is still underway… we are committed to address these liabilities and aim to resolve them within one to two months of the acquisition,” the spokesperson stated. They further emphasised that Settl consistently honoured security deposit refunds within the agreed 30-day period in cases unrelated to these acquisitions.
Despite the company’s assurances, several tenants who spoke to TOI provided evidence showing their agreements were directly with Settl and not Hyphen. These individuals claim they have been waiting for refunds for months, raising questions about the broader financial management and accountability within Settl.
Some tenants said they were informed by the company that delays were due to “internal discrepancies” or banking issues. Meanwhile, a growing number of affected individuals have turned to social media platforms to voice their concerns. Others have filed complaints with the National Consumer Helpline, though TOI has not independently verified the details of these complaints.
In an effort to organise and track their cases, former tenants have created a shared spreadsheet consolidating details about pending refunds. This document reportedly contains approximately 50 entries and continues to grow, reflecting the scale of the issue. The situation has left many former tenants questioning the company’s transparency and commitment to resolving the matter in a timely manner.