Consumer forum orders Kukatpally MG Motors to refund Rs 16.30 lakhs for delivering defective car

Hyderabad: MG Motors Dealers in Kukatpally were ordered to refund Rs 16.30 lakhs paid by a customer for purchasing a vehicle, along with an additional Rs 30,000 as compensation and Rs 20,000 to cover litigation expenses and the inconvenience caused due to improper delivery, as per an order passed by the District Consumer Disputes Redressal Commission, Nampally.

Case details

Saritha Rachakonda (40), a resident of Manikonda, booked an MG Astor Spicy Orange 2022 model car from MG Motors Dealers in Kukatpally for a cost of Rs 16,30,000.

Saritha, along with her family members, went to the showroom to receive the car on March 12, 2023, the delivery date set by MG Motors Dealers. While preparing for the formalities, the showroom staff asked Saritha to pay the balance payment at 12:30 pm and she was asked to wait for 30 minutes to receive the car.

However, it was 3 pm by the time Saritha and her family were allowed to see the car. To her disappointment, the car she was shown did not look new. She, along with her husband, spotted several defects that included hairline scratches on the front bumper, paint splatters on the front bonnet and a bobbling silencer. They also found dirt, dust and tree leaves inside the car doors, on the bonnet, the fuel lid, and under the panoramic sunroof. The floor mats were already fitted inside even though Saritha never ordered them.

This made her question if the car she was being given was brand new as claimed by the showroom staff.

Showroom charged Rs 33,000 for accessories without approval

Two days before the date of delivery, Saritha received a call from the showroom staff about accessories and extra fittings needed for the car. Saritha requested the price list of the accessories but she did not receive any reply from the showroom staff.

However, on the date of delivery, certain accessories and fittings were added to the car without Saritha’s approval and she was charged Rs 33,000.

After checking the condition of the car, Saritha concluded that the car given to her was booked by some other customer and for some reason given to her. Saritha refused to take delivery of a defective used car for which she had to pay more than Rs 16 lakhs.

No move towards replacement

Saritha sent a detailed email to the MG Motor Dealers manager who replied on March 21, 2023, accepting the fault, saying that the showroom staff can provide the same model from another dealer. Saritha sent a legal notice to MG Motors Dealers and Raam 4 Wheelers LLP but received no reply. Moreover, MG Motors dealers and Raam 4 Wheelers LLP did not refund the amount paid by Saritha.

Sartiha was left with no choice but to file a complaint with the District Consumer Disputes Redressal Commission against MG Motors Dealers and Raam 4 Wheelers LLP, alleging a lack of service and unfair trade practices, after which the commission served notices to both firms.

MG Motors dealers admitted the inconvenience caused and requested to allow them to deliver the car with the issues resolved or to replace the car with the same model.

In the mail sent to Saritha, MG Motors Dealers stated that they requested the co-dealer to hold the stock for three days and in case of no confirmation, replacement would not be an option.

The commission remarked that it is the responsibility of MG Motors Dealers to deliver the car to Saritha up to the sales expectations after final pre-delivery tests. It noted that Saritha naturally has the right to expect the car in good condition and to services of a certain quality.

Customer has the right to receive proper service

The consumer commission stated that MG Motors Dealers did not show any proactive approach to resolve the issue, which amounts to unfair trade practices and delivery in service.

Therefore, the commission concluded that Saritha is entitled to a refund of the cost of the car along with reasonable compensation for the mental agony suffered by them. It ordered MG Motors Dealers to refund the amount of Rs 16.30 lakhs and pay Rs 30,000 towards compensation with an additional Rs 20,000 within 45 days of receipt of the order.