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Old 17th April 2017, 18:30   #1
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Default Consumer court: Used car dealer liable for selling stolen car & lack of verification

This is a case that happened in Hyderabad, and is quite shocking. Imagine you buying a used car and after a while of owning it, Police show up at your doorstep and confiscate the vehicle saying that it is a stolen car!

Well, such was the situation with SSRL Narayana who bought a used Indica for Rs. 2.24 lakh in March 2014. The Hyderabad police took custody of the vehicle on February 2, 2015. Mr. Narayana approached the car dealer who refused to take any responsibility. He later on proceeded to consumer forum where "Dr Car Private Limited" (Dealer) was held guilty for selling a used car without proper verification and authentication. The dealership has been ordered to refund the customer the amount of Rs. 2.25 lakh and also pay a compensation amount of Rs. 25,000.

The dealer argued with statement that they were just providing a platform for buyers and sellers of used cars. But that didn't stand up and the following judgement was passed:
The fact that police had investigated the theft and traced the vehicle to the complainant and subsequently seized it leads us to infer that the vehicle was placed for resale at Dr Car fraudulently with a malafide intention to cheat both the original owner of the vehicle and the complainant.
Source: ET Auto

The second hand car market in India is pretty vigilant and you will surely find a number of sweet deals if you look for them. It is necessary though to be on a lookout and take the decisions wisely. Here are a few must-read threads if you are even considering to buy a used car:
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Old 18th April 2017, 11:22   #2
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Default Re: Consumer court: Used car dealer liable for selling stolen car & lack of verification

Good precedent, but tell me the car was confiscated by the Police on 2 Feb 2015, and the news item belongs to 15 Apr 2017, so I assume that the decision was taken recently.

Does the consumer court want to say that the value of inconvenience felt by the customer for about 2 years is worth only Rs 25000???
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Old 18th April 2017, 13:53   #3
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Default Re: Consumer court: Used car dealer liable for selling stolen car & lack of verification

One has to remain extra vigilant on dealing with used cars & dealers.

An acquaintance who's a college professor had sold his car to an used car dealer in Tiruvallur, TN & bought a new car. A few weeks later on a early morning, a police jeep rams into professor's house, without much talks, they arrest the professor & take him away. Biggest problem was...LANGUAGE!! Police spoke Telugu, while professor knows only Thamizh. They took him to some station in Chittoor & filed FIR immediately. All of this happens in a blink of an eye.

Later that day, the whole story unfolds as, the car which the professor had sold to dealer was used for a theft at jewelry shop in the locality where professor was arrested with the car being misused with or without the knowledge of used car dealer. All the sale agreement docos were thrown to bin by police. Incidentally the owner of jewelry shop was very influential to get the police work on the case swiftly & hence the professor's arrest.

It took about a month or so to prove the innocence of professor & the jewelry shop owner was OK to let the matters drop & was keen to nab the real accused & not with the one falsely accused.
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