Ludhiana: Consumer panel directs car dealer to pay ₹1 lakh

A legal notice sent in May 2023 received a vague reply, in which the company admitted the earlier billing, calling it an “internal matter” to hold a special colour variant

The district consumer disputes redressal commission has ordered a city-based car dealership to pay ₹1 lakh compensation to a woman for selling her a car that had been billed months before its delivery, terming it an unfair trade practice.

The order was passed by commission president Sanjeev Batra and member Monika Bhagat. (HT Photo)

The complainant, Kavita Tyagi, proprietor of Everest Sports Academy, had approached Lally Motors in August 2022 to purchase a Volkswagen Taigun Highline in Wild Cherry Red colour. Due to the colour’s unavailability, the dealership arranged a vehicle from their Chandigarh outlet and delivered it on August 22, 2022.

However, in March 2023, the complainant was surprised to see a “service due” message on the car’s dashboard. Upon inquiry, she was told the car was actually billed in March 2022—five months before delivery. This raised suspicion that she had been sold an older vehicle, despite being assured it was brand new.

Repeated calls and emails to the dealership went unanswered. A legal notice sent in May 2023 received a vague reply, in which the company admitted the earlier billing, calling it an “internal matter” to hold a special colour variant.

Tyagi alleged that she suffered mental agony, harassment, and financial loss due to the misleading sale. She also raised concerns over the car’s reduced warranty period and resale value. In response, Lally Motors offered to extend the vehicle’s warranty by 10 months but did not accept any wrongdoing.

The car was serviced three times under warranty after she raised issues, including a malfunctioning airbag light and power window switches. However, the Commission found that while there was no manufacturing defect, the non-disclosure of the car’s initial billing date and misleading information about its “new” status amounted to unfair trade practice.

In its order, the Commission dismissed the complaint against the manufacturer, Skoda Auto Volkswagen India Pvt. Ltd., but held Lally Motors responsible for misleading the buyer. The firm has been directed to pay ₹1 lakh as compensation within 30 days, failing which it will attract 8% annual interest until full payment is made.

The order was passed by commission president Sanjeev Batra and member Monika Bhagat.