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Old 30th May 2018, 12:12   #361
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Default Re: Delhi Transport Dept tells Dealers to stop "Handling Charges" SCAM. EDIT: Telangana and Kerala t

Quote:
Originally Posted by Djay View Post
Yes, I am sure dealers will have some cut in this. As per them they operate at wafer-thin margins and anything additional helps. Not sure about this as then why would people be dealers and open multiple showrooms if it was not lucrative.
Precisely! It is very common to find one guy owning dealerships of the same company in many cities of a region and/or owning multiple brands dealerships across the city.

Quote:
Originally Posted by Djay View Post
Mods, would request to please change the name of this thread to something generic like 'Handling Charges by vehicle dealers'. This issue is not restricted to a few states but common all over India. Might give readers a clearer picture and increase awareness about the issue.

Just my two cents!!
In fact, I would ask the mods to edit the title to reflect that it has now also been banned in MH.
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Old 17th November 2018, 14:09   #362
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Default Re: Delhi Transport Dept tells Dealers to stop "Handling Charges" SCAM. EDIT: Telangana and Kerala t

Came across this news in today's Indian Express, -

Quote:
Pune: Government warns automobile dealers not to charge extra money from customers
As per officials, the government has taken a cognizance after receiving complaints about vehicles distributors collecting exorbitant amount from customers in the name of “handling charges”.
AS officials with the Regional Transport Office (RTO) failed to rein in automobile dealers who loot buyers by squeezing out thousands of rupees in the name of “handling charges”, the state government has issued a government resolution (GR) terming levying of such charges over and above registration fee as illegal and a violation of motor vehicle laws.

As per officials, the government has taken a cognizance after receiving complaints about vehicles distributors collecting exorbitant amount from customers in the name of “handling charges”. The government has strictly warned dealers not to charge any amount over the vehicle price and taxes apart from registration fees, which has to be paid to the RTO.


“The vehicles dealers are charging extra amount from customers buying two-wheelers and four-wheelers. There were reports in the newspapers about dealers looting the buyers in the name of ‘handling charges’. It has been made clear that the dealers can not charge anything over the price of the vehicle apart from taxes and registration fee as decided by the government. Distributors should levy only these two charges and should not take any extra money from the buyers,” says the directive.

It has also directed the RTO officials to conduct checks that no automobile dealer is charging “handling charges” from the buyers. It has also directed the RTO officials to strictly inspect the documents submitted by the distributor for obtaining the registration certificates. “Only after confirming this, the registration number should be issued,” said the GR.

According to the sources from RTO, there have been many cases recently where dealers charge anything between Rs 2,000 to Rs 5000, depending on the vehicle, in the name of “handling charges”. The dealers are charging these fees by telling the customers that they need to pay “extra money to the RTO officials for speedy clearance of the registration request”.

“We will take action if received complaint for handling charges. A customer has to be aware while purchasing vehicle and should ask for a receipt. If the dealer is charging amount for registration, tax etc, the dealer should justify the amount he charges. For example, if registration fee is Rs 300 and Rs 3,000 is tax, the customer should get these receipt. If dealers are charging more than this, they (customers) should ask for receipt. The documents comes to us for verification. If we found any irregularity, we will file case against the dealer,” said Babasaheb Ajri, RTO, Pune.
Delhi Transport Dept tells Dealers to stop "Handling Charges" SCAM. EDIT: Telangana and Kerala too-handling_charges3.jpg
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Old 20th March 2019, 20:58   #363
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Default Re: Delhi Transport Dept tells Dealers to stop "Handling Charges" SCAM. EDIT: Telangana and Kerala t

Quote:
Originally Posted by SILVERWOOD View Post
SC has not passed any order as of now. They were observations by Justice Jain in preliminary hearings which the media reported.

This is how our Govt machinery works.What prevented them in issuing a public notice in leading newspapers.....?

Waseem.....

Since I am being asked to pay 9500 as Handling Charge for the Harrier, I filed a complaint with Tata Motors Customer Care. They gave me contact details of their Territory Sales Manager, who forwarded me two judgments. 2012 and 2017 (attaching them here).

Here is my understanding of what has happened in the courts till now.

2012 - DELHI HIGH COURT
The courts has limited its judgment to the jurisdiction of the Transport Department. Where the words mean that since handling charge is not part of the registration process, Transport Department has no jurisdiction and has no power to regulate in this matter. It is vague, not clear about the handling charges.

It actually sides with the dealers, when it says "If the vehicle dealers are providing any extras in terms of services, goods, fuel etc. to the purchasers and the purchasers agree to pay therefor, in the absence of any law to control the same, this Court cannot issue any direction with respect thereto."

2012 - SUPREME COURT - JUSTICE JAIN'S COMMENTS
The same petitioner then approached the Supreme Court, stating Delhi High Court has erred in holding, that complaints of over-charging had to be decided on a case-to-case basis and no general directions could be passed. Here Justice Jain did express his displeasure. But, I can't find out if he or some other judge ever ruled anything post this hearing. Lashing out at a lawyer doesn't mean a judgment has passed. So, it's of no use.

2017 - SUPREME COURT
The most recent proceeding was of 2017, where the same petitioner again approached the Supreme Court, but it refused to interfere with the 2012 High Court order.

------------

What I could make of the above:

# RTO / Transport Dept doesn't have the power to stop / ban 'handling charge'.
# Neither the Supreme Court or the Delhi High Court has banned 'handling charge'.
# Whatever waivers people are getting are cases of the dealer / manufacturer taking a call to let the handling charge go.
# No dealer or manufacturer can be arm twisted into submission in this case.


@SILVERWOOD, please correct me if I am wrong or missing something.


I guess, I will have to pay.
Attached Files
File Type: pdf High Court.pdf (270.9 KB, 96 views)
File Type: pdf Supreme COurt.pdf (56.2 KB, 141 views)
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Old 20th March 2019, 21:31   #364
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Default Re: Delhi Transport Dept tells Dealers to stop "Handling Charges" SCAM. EDIT: Telangana and Kerala t

I had raised a complaint with TML, to no avail. Dealership got back with an exaggerated breakdown of the cost and also mentioned they would provide with a tax paid receipt. Realized there isn't any point in arguing other than for having ruined my experience with them.

Quote:
Originally Posted by ashutoshb View Post

I guess, I will have to pay.
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Old 21st March 2019, 16:06   #365
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Default Re: Delhi Transport Dept tells Dealers to stop "Handling Charges" SCAM. EDIT: Telangana and Kerala t

The issue from dealer perspective is (speaking from 2W dealer perspective here).

RTO does not approve passing of the vehicles without money. Part of the handling charge is actually money dealer pays to RTO for payment. A 2W dealer is paying anything from 300-400 Rs. per vehicle for passing to RTO.

Not to mention random RTO penalty that dealer has to pay. An example, if passing is not done in 7 days there is a penalty of Rs. 100 in some jurisdictions. Yes, it is not a state government directive, things that local RTO offices can decide themselves.

A 2W margin ranges from 2000-3000 Rs. It is not possible for dealer to survive on just that when paying 10-15% of their margin to RTO for what is basically a bribe to pass the vehicle they sold. And the onus for passing of the vehicle is on dealer not the customer.

The RTO Vahaan 4 system is so bad it has caused dealers to loose thousands of Rupees in "lost payments". Just last week a dealer had a RTO payment of Rs 43,000 declined in RTO system but money was taken from bank. The RTO has nothing put in place to handle such cases. Payments get stuck in "cart" for many days at a time.
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Old 21st March 2019, 21:15   #366
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Default Re: Delhi Transport Dept tells Dealers to stop "Handling Charges" SCAM. EDIT: Telangana and Kerala t

Quote:
Originally Posted by AutoNoob View Post
this amount is used to grease palms of RTO staff. If dealer fails to pay up, the registration files are rejected for smallest of the reasons or even if they are accepted, the registration is kept pending for long... Since the margins in 2 Wheeler sales are already wafer thin, it's not feasible for dealers to payup from their pocket. So, they demand from customers in disguise of handling charges... He offered to waive off the charges for us and pay from their side. We left the conversation at that point and paid the amount.
Quote:
Originally Posted by kumarshah View Post
RTO does not approve passing of the vehicles without money. Part of the handling charge is actually money dealer pays to RTO for payment. A 2W dealer is paying anything from 300-400 Rs. per vehicle for passing to RTO... A 2W margin ranges from 2000-3000 Rs. It is not possible for dealer to survive on just that when paying 10-15% of their margin to RTO for what is basically a bribe to pass the vehicle they sold. And the onus for passing of the vehicle is on dealer not the customer.
Thanks for confirming the issue. I too came to know this from a dealer last year.

I wonder why OEMs don't take up this matter through SIAM with Centre & State governments and leave dealers to suffer. Why FADA doesn't take this up ?
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Old 21st March 2019, 21:29   #367
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Default Re: Delhi Transport Dept tells Dealers to stop "Handling Charges" SCAM. EDIT: Telangana and Kerala t

Quote:
Originally Posted by AutoNoob View Post
Thanks for confirming the issue. I too came to know this from a dealer last year.

I wonder why OEMs don't take up this matter through SIAM with Centre & State governments and leave dealers to suffer. Why FADA doesn't take this up ?
The amount of ways RTO can make the life of a dealer living hell in the time it takes the government to do anything is a big reason. FADA state and local associations have tried talking to the state governments but things don't really change. They yield immense power on dealer's ability to conduct business.

But the government is also at fault, their RTO software is ridiculously bad. As an example, the software can be programmed to levy a penalty if passing is not done by dealer in 7 days. Now...the software counts Saturdays & Sunday s in this - days RTO is closed. It also counts any RTO holidays as part of 7 days. So during Diwali when retail is highest, RTO was closed for 4 days straight - penalty on every retail made in the previous week.

Basically every 2W dealer at least is counting an average of 100 Rs. penalty they have to pay RTO due to how bad Vahaan 4 is.
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Old 21st March 2019, 21:55   #368
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Default Re: Delhi Transport Dept tells Dealers to stop "Handling Charges" SCAM. EDIT: Telangana and Kerala t

The RTO's take home per day ranges between ₹ 1-2 lakh, if there's only a single 'overworked' RTO he can make ₹ 3-4 lakh/ day, all under the desk. So there's a nexus between the dealer/RTO no one's gonna give up such a 'lucrative' income for some court ruling. The best would be to get your car regd. in either Finland or some Scandinavian country where there's less corruption.
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Old 25th March 2019, 11:33   #369
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Default Re: Delhi Transport Dept tells Dealers to stop "Handling Charges" SCAM. EDIT: Telangana and Kerala t

Quote:
Originally Posted by ashutoshb View Post
Since I am being asked to pay 9500 as Handling Charge for the Harrier, I filed a complaint with Tata Motors Customer Care. They gave me contact details of their Territory Sales Manager, who forwarded me two judgments. 2012 and 2017 (attaching them here).
I guess, I will have to pay.
I am absolutely appalled and aghast at this official response from Tata Motors. Forget the legality, Tata being known as an ethical brand with strong code of conduct is actually supporting and defending the corruption in the registration process. Everyone knows these handling charges include a cut to be paid for bribing RTO officials.

I suggest you escalate this within Tata Motors and ask them to provide in writing what is exactly covered under handling charges. Customers are not expected to pay for each and every administrative cost of the dealers. That’s Tata Motors job. If they say this covers some transportation, storage cost of dealers etc., then Tata Motors should bear these as the dealers are selling their cars. In some cases Tata have asked dealers to not charge these. So why the double standards now.

I have had multiple recent experiences with Maruti and Maruti dealers do not charge these. Rs. 9500 is a huge amount. Why should consumers pay so much when already more than 50% of the vehicle costs are taxes.

Recently I was very happy with the new launches of Tata, their attention to safety etc. But by supporting corruption like this they have shamed themselves. Tata is the only manufacturer (apart from Hyundai) whose dealers openly charge ‘Handling Charges’. I was interested in the Tiago. But now I would gladly spend my money elsewhere as corruption is just not acceptable.
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Old 27th March 2019, 15:19   #370
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Default Re: Delhi Transport Dept tells Dealers to stop "Handling Charges" SCAM. EDIT: Telangana and Kerala t

Quote:
Originally Posted by Durango Dude View Post
The RTO's take home per day ranges between ₹ 1-2 lakh, if there's only a single 'overworked' RTO he can make ₹ 3-4 lakh/ day, all under the desk. So there's a nexus between the dealer/RTO no one's gonna give up such a 'lucrative' income for some court ruling. The best would be to get your car regd. in either Finland or some Scandinavian country where there's less corruption.
I haven't found one dealer friend yet who likes their RTO. RTO is a big big hassle not just for the common man but also for the dealers that interact with them. They make rules as they see fit, they change rules as they see fit. They are not there to either serve their customers, they only exist to make money for themselves.

With Vahaan 4 the dealer is now doing 70% of old RTO's work. Dealer has to scan all documents and upload them and pay the tax, get receipts. Previously, all documents were sent to RTO with payment and they did all that. So, even from dealer end their expenses have increased for RTO passing while the money RTO charges to customer for passing is constant.

All RTO is now doing is looking at documents and passing the vehicle. And for that they are charging money.
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Old 18th April 2019, 11:40   #371
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Default Re: Delhi Transport Dept tells Dealers to stop "Handling Charges" SCAM. EDIT: Telangana and Kerala t

The fraudulent practices are still being continued without any fear by the manufacturers and dealers.

Today I am charged with Rs. 3000 handling charge for buying Creta. I directly called Hyundai customer care and they confirmed that it is in place for Hyundai all over India and they cannot do anything about it. When I asked them to show any reference on Hyundai website or on paper, they simply said there is no such documentation and the entry will only reflect in the dealer's invoice. And since the dealer is part of Hyundai, the entry in the invoice is sufficient as documentary evidence from Hyundai.

I though of lodging a complain but thinking of the facts that in India, it is the customer who will have to give more time than the dealer/manufacturer to fight legal battles, I gave up the idea.

Last edited by anu007 : 18th April 2019 at 11:41. Reason: Extra line breaks removed
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Old 19th April 2019, 15:32   #372
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Default Re: Delhi Transport Dept tells Dealers to stop "Handling Charges" SCAM. EDIT: Telangana and Kerala t

Hyundai still continues to demand handling charges. I had gone to book an i20 for a friend at Sharayu Hyundai, Navi Mumbai and following is the Proforma invoice they shared with me, which included INR 3,000 as handling charges:

Delhi Transport Dept tells Dealers to stop "Handling Charges" SCAM. EDIT: Telangana and Kerala too-hyundai-india-illegal-handling-charges.jpeg

I also wrote a mail to Hyundai a few days later regarding this issue, and they asked me to share my contact number on mail. The following day, a lady from Hyundai India called and told me that handling charges are indeed taken from the customer and it is approved by the company. I asked her to send me a mail giving the same in writing but I haven't received any response from them since.
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Old 10th June 2019, 16:37   #373
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Default Re: Delhi Transport Dept tells Dealers to stop "Handling Charges" SCAM. EDIT: Telangana and Kerala t

Modi Hyundai in Thane, Maharashtra has also begun demanding handling charges. The same can be seen in the price list attached below:

Delhi Transport Dept tells Dealers to stop "Handling Charges" SCAM. EDIT: Telangana and Kerala too-venue-price-list-modi-hyundai.jpg
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Old 10th June 2019, 22:08   #374
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Default Re: Delhi Transport Dept tells Dealers to stop "Handling Charges" SCAM. EDIT: Telangana and Kerala t

Quote:
Originally Posted by Torque_Curve View Post
Modi Hyundai in Thane, Maharashtra has also begun demanding handling charges. The same can be seen in the price list attached below:

Attachment 1883643
Report it to Hyundai(with this TBHP link). They are known to have a proactive customer support.
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Old 7th July 2019, 13:58   #375
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Default Re: Delhi Transport Dept tells Dealers to stop "Handling Charges" SCAM. EDIT: Telangana and Kerala t

I'm not sure what so special with the Vespa dealers in Bangalore, but two of the dealers (Velocity and Avanish Motors) I visited in Bangalore had an exorbitant amount listed as "Handling charges". Their price list puts the amount under the heading "Registration, Handling and Smart card" however the registration and smart card charges of Rs 500 is already included in the road tax line item if calculated.

Rs 7000 as handling charge for a two wheeler sounds crazy, but it appears to be norm here in Bangalore, not sure about other places. When asked as to why they are charging so much, both the dealers said "Sir, its a Vespa and it's different from other two wheelers and its the same with all the Vespa dealers"

Price lists from both dealership attached.

Since we were particular on getting a Vespa, had to go ahead with this.
Attached Thumbnails
Delhi Transport Dept tells Dealers to stop "Handling Charges" SCAM. EDIT: Telangana and Kerala too-img_20190706_172423.jpg  

Delhi Transport Dept tells Dealers to stop "Handling Charges" SCAM. EDIT: Telangana and Kerala too-img_20190601_185441.jpg  

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