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New cars may cost less, courtesy HC

delhi Updated: Apr 21, 2012 00:07 IST
Harish V. Nair

Planning to buy a new car? Here is some good news.


In a huge relief to car buyers, the Delhi High Court on Friday banned levying of "handling charges" by car dealers.

The order meant that a new car buyer might end up saving up to Rs 25,000. A public interest litigation before the court had sought curb on the illegal charges, including logistic charges such as loading and unloading charges of vehicles from trucks, levied by car dealers on the buyers.

The PIL challenged extra bills to customers in addition to registration and requisite taxes. After the court slammed the Delhi government's transport department, it had ordered strict action in February against the errant dealers but it was hardly implemented. The non-compliance with the directive made the court rap the transport department again.

"In the event of Delhi government's transport department receiving any complaint of any vehicle dealer charging anything extra from the vehicle purchaser for providing the services of registration, the government shall enquire into the said complaint and if find any merit therein, shall take action in accordance with law against such vehicle dealers," a bench headed by acting chief justice AK Sikri said on Friday.

The PIL had claimed that such illegal charges vary between Rs 3,500 and Rs 25,000, per vehicle depending on manufacturer and the cost of the vehicle.

It had also contended that a a sum of more than Rs 550 crore has been collected by the car dealers since 1999 by levying such extraneous charges.