[TusharK]

The District Consumer Grievances Redressal Forum has ordered a Nagashanti Kia in Hubballi to pay Rs 15,95,110 for delivering a pre-facelift Seltos when the customer had booked the facelift version.



Nagaraj Patil had booked the HTK+ variant of the Seltos on May 28, 2020. The dealership was expected to deliver the facelift version, which was scheduled for launch on June 2. Instead, the customer was handed over the older version at the time of delivery.

The customer realised that the dealership had sold him the pre-facelift version after a month. He reached out to the dealership seeking a replacement. While his request for a replacement vehicle was refused, the dealer offered to fit the car with updated bumpers and features.

The customer then approached the consumer redressal forum and argued his case. After hearing both sides, it as found that the Kia dealer had not delivered the vehicle, which the complainant had booked. This amounted to a lapse in providing services and a violation of the Consumer Protection Act.

The dealer was ordered to refund the customer Rs 14.85 lakh with 8% interest from July 2, 2020, and pay a compensation of Rs 1 lakh. The forum also directed the dealer to pay Rs 10,000 towards expenses.

Source: ET Auto

Link to Team-BHP News

[Lalvaz]

Good verdict, although it took nearly 2.5 years, even in a special forum such as the Consumer Court. Really wish our legal system moved faster especially in open and shut cases such as these where there is clear cut evidence of fraud and misrepresentation.

Anyways, kudos to the consumer for taking the dealership to court and kudos to the court for giving a fair and balanced verdict. Hope the dealership does not delay further by going in appeal.

[invidious]

Lovely. Best of luck getting the dealer to execute the order if he refuses. You have to file an application if he doesn't comply with the order. He can take the matter to State Commission and stall proceedings.

[SedateGuy]

Where are the punitive damages that will hurt the dealer?

This verdict is a loss to the buyer, it won't cover his legal costs even. It's just a refund order, if he can enforce it at all. Good luck with that.

Till substantial punitive damages start getting awarded this will go on on all industries.

[Lalvaz]

Originally Posted by SedateGuy

Where are the punitive damages that will hurt the dealer?

This verdict is a loss to the buyer, it won't cover his legal costs even. It's just a refund order, if he can enforce it at all. Good luck with that.

Till substantial punitive damages start getting awarded this will go on on all industries.

The dealer has to refund the cost of the vehicle, plus interest from 2020 till date of payment, plus 1 lac as penalty. I think the verdict is fair and balanced. How much did you expect the judge to award?

Also bear in mind that the cost of litigation in a district consumer forum is not very expensive. So I'm sure the customer would not mind this order. Now if only the dealer pays up rather than delaying the matter by going into appeal.

[hrman]

The headline is a bit misleading. The fine amount is Rs. 1 lakh towards legal charges. They need to refund the car purchase amount (and take back the car i think)
But it's good to see a ruling where the consumer has got some relief for wrong info provided by the dealer during sale.

[Joeboy]

It is surprising how the customer realised that he had been sold a pre facelift version only after a month after taking delivery of the car and not while taking delivery. I am sure that the dealer will go for an appeal.

[bullitt1]

Good to hear the verdict, but converting this to reality is a different matter altogether. When dealers make excuses for the simplest of reasons, this looks like a distant dream, though I hope the customer gets compensated. But why he didnt notice during delivery.

[dicor]

Originally Posted by Joeboy

It is surprising how the customer realised that he had been sold a pre facelift version only after a month after taking delivery of the car and not while taking delivery. I am sure that the dealer will go for an appeal.

Originally Posted by bullitt1

Good to hear the verdict, but converting this to reality is a different matter altogether. When dealers make excuses for the simplest of reasons, this looks like a distant dream, though I hope the customer gets compensated. But why he didnt notice during delivery.

Not everyone is a petrolhead or reads fine prints on automobiles. Even so, many enthusiasts could not find the difference between 2022 and 2023 Thar.

[raptor_diwan]

There must be severe action taken against the dealership apart from the 1 lakh compensation, there should be a black mark on their record, so if they come across a similar issue, they will be shut down dealership or something similar

Originally Posted by Joeboy

It is surprising how the customer realised that he had been sold a pre facelift version only after a month after taking delivery of the car and not while taking delivery. I am sure that the dealer will go for an appeal.

Most people who buy a car are not enthusiasts or do not have any idea about the features or aware of small models. All they need is a car that can transport them comfortably and provide a luxurious status. Maybe after a month, they would come across a friend who told them about a new facelift version or a better service center, or they met a new car buyer in the parking lot who informed them. The dealer might be aware of the person's knowledge at the time of booking and dared to give them an old version of the vehicle to cheat them.

[RGK]

I assume that after the court's decision, KIA will close the dealership. Hyundai used to have very strict standards for quality and inspection.

[SedateGuy]

Originally Posted by Lalvaz

The dealer has to refund the cost of the vehicle, plus interest from 2020 till date of payment, plus 1 lac as penalty. I think the verdict is fair and balanced. How much did you expect the judge to award?

Also bear in mind that the cost of litigation in a district consumer forum is not very expensive. So I'm sure the customer would not mind this order. Now if only the dealer pays up rather than delaying the matter by going into appeal.

The verdict would barely cover the costs, if at all. I wonder what is the status of registration charges and taxes.

I am all for putting a hefty amount equivalent to, if not more than the cost of the vehicle as punitive damages for the harassment and mental anguish. That will make dealers and manufacturers more vary about doing all this and then taking the legal route.

[AutoNoob]

Originally Posted by Lalvaz

Really wish our legal system moved faster especially in open and shut cases such as these where there is clear cut evidence of fraud and misrepresentation... Hope the dealership does not delay further by going in appeal.

Originally Posted by invidious

Best of luck getting the dealer to execute the order if he refuses. You have to file an application if he doesn't comply with the order. He can take the matter to State Commission and stall proceedings.

Originally Posted by SedateGuy

It's just a refund order, if he can enforce it at all. Good luck with that.

Originally Posted by Lalvaz

Now if only the dealer pays up rather than delaying the matter by going into appeal.

Originally Posted by Joeboy

I am sure that the dealer will go for an appeal.

Originally Posted by bullitt1

converting this to reality is a different matter altogether.

Originally Posted by RGK

I assume that after the court's decision, KIA will close the dealership. Hyundai used to have very strict standards for quality and inspection.

KIA will not get involved in this matter. Even if KIA is a party to the case, they'll hide behind the legal structure that the dealer is a separate business entity. KIA sold the vehicle to the dealer and and it's the dealer who made the mess without their involvement/ consent.

Dealer will surely appeal at every stage : State Consumer Forum, National Consumer Forum and Supreme Court. The customer may not be able to pursue till National Forum or Supreme Court. Even if customer fights till last, he'll see money only after getting favourable order from SC.

Only hope (rather a prayer) I have is the final authority imposes high punitive damages as well for dragging the matter.

[dextor]

I am sure this is not the end of the ordeal.
Dealer for sure will not part away with so much money. And I believe the customer is continuing using the car. The dealer will appeal in higher courts and references will be taken from older cases. I really doubt the customer will get his money in less than few more years.
Only possibility is if the dealer re-appeals & looses again in lower court, he may "settle" instead of spending more in higher courts.

[driver52001]

Can the dealership file an appeal against the consumer forum order in a higher court and so on? If yes, they could use this for delaying. However, somewhere had read that high court immediately dismisses any appeal against consumer court order because consumer is king and would instead slap a cost on the company for wasting time.