The District Consumer Disputes Redressal Commission in Indore has reprimanded a local car dealership for overcharging a customer by more than Rs 35,000 and has directed the dealership to provide compensation for mental harassment along with the refund.
The commission ruled that the car dealer’s actions constituted a "deficiency in service and unfair trade practice." Consequently, the dealer has been ordered to return the excess amount charged to the customer with an annual interest of six percent.
Additionally, the commission mandated compensation for the complainant’s mental distress and reimbursement for legal expenses incurred during the proceedings.
The ruling was delivered on February 6 by Commission President Vikas Rai and Member Nidhi Barange in response to a complaint filed by Dr. Manoharlal Bhandari, a former professor at a government medical college in Indore. The details of the order were disclosed by Bhandari’s legal counsel, Chanchal Gupta, on Saturday.
Breakdown of the commission’s ruling
According to the judgment, Patel Motors, the car dealership in question, was found guilty of overcharging Dr. Bhandari by Rs 35,518. While the dealership had previously refunded Rs 1,531, it was still liable to repay the remaining Rs 33,987.
- The commission further directed Patel Motors to:
- Pay the outstanding Rs 33,987 to Dr. Bhandari.
- Provide interest at a rate of 6 per cent per annum on the refunded amount until the payment is completed.
- Compensate the complainant with Rs 5,000 for the mental distress and inconvenience suffered.
- Reimburse Rs 5,000 to cover legal expenses incurred by Dr. Bhandari in pursuing the case.
Case background
As per the details provided by advocate Chanchal Gupta, Dr. Bhandari purchased a new vehicle from Patel Motors in 2019 under an exchange scheme, trading in his old car as part of the deal. However, despite being offered an attractive purchase price, he was charged a higher amount than what was initially agreed upon.
Despite multiple attempts to reclaim the excess amount, Patel Motors failed to provide the refund, leaving Dr. Bhandari with no option but to seek legal recourse through the consumer forum.
The ruling underscores the importance of consumer rights and fair trade practices, setting a precedent for businesses to uphold transparency and integrity in their transactions.
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