[WorkingGuru]

Really wonder which other kinds of organised businesses have the temerity to operate in contravention of a Supreme Court judgement.

Can't believe that someone whos unknowingly paid handling charges hasn't gone to consumer court and made the dealer repay the same with compensation.

Even if few of them are fined to pay the car buyer say 5x of the handling charges, then it'd act as a deterrent for any business operating like this.

[kosjam]

Originally Posted by WorkingGuru

Really wonder which other kinds of organised businesses have the temerity to operate in contravention of a Supreme Court judgement.

Can't believe that someone whos unknowingly paid handling charges hasn't gone to consumer court and made the dealer repay the same with compensation.

Even if few of them are fined to pay the car buyer say 5x of the handling charges, then it'd act as a deterrent for any business operating like this.

The (supposedly goldplated) popcorn at Multiplexes and a bottle of cold drink at a cricket stadium immediately come to mind

But jokes aside, if you are going for a commuter vehicle, you can shop around at the multiple dealers to get the best deal, including discounts. For the larger more expensive dealers, who have at best 1 or 2 showrooms, its a bit more difficult, with a lot of haggling, threats and patience to get to a point where you might get a good deal.

It was one of the reasons why Elon Musk decided on the direct to customer model for Tesla, completely bypassing a dealer network, and now we see Ola leading the way in India.
Maybe dealers should take note.

[alpha1]

I wonder what difference does it make to consumer, whether he pays 19.9 lakhs for vehicle and 10000 for handling charge (pre-SC order) or 20 lakhs for vehicle (post SC order).

Ultimately the net outflow from the pocket is going to remain the same. In fact what we have done is to fill Govt coffers (taxation) because the price will be part of EX-showroom.

Remember that whatever is the actual cost borne by the camaraderie of manufacturer and distributor/dealer (and their desired gross margins over and above this) will be borne by end customer only. By this way or that way.

[raja_ys]

Update on my case regarding "Illegal Handling or Logistic charges by Dealers"

Nov 2014 Booked a Scorpio from Koncept Mahindra, Lajpat Nagar, Delhi

Dec 2014 Vehicle arrived and told to pay the balances of payments.

Objected to the Illegal handling/logistic charges of Rs 7500, Dealer said this was a valid charge as per a positive court order in favor of them.

Jan 2015 Vehicle delivered but unconvinced of the illegal charges wrote to Mahindra who forwarded my issue back to dealer. They produced a court order but upon reading the content it was a irrelevant order to my cause.

Wrote back to Mahindra but no solution as they supported the Dealer.

Now turned to the Delhi Transport Dept but no respite as they directed me to an RTO out of Jurisdiction, The MLO heard my complaint verbally and said he will look into it.Further follow up resulted in no result.

May 2016 filed a case in the Delhi Consumer Forum against Mahindra and Koncept Automobiles, what normally would be a 2-3 year time period turned out to 6 long years due to Covid and Delhi Govt's Non appointment of Members/President to the Quorum.

During the case Mahindra dusted itself off from any responsibility as it stated that this is btw the Customer and Dealer and have received any part or share of these charges and also acknowledged that these charges are illegal in nature.

Dealer produced a letter written by Mahindra which was vaguely acknowledging that its aware of dealers collecting such charges and to address the RTO

Mahindra later issued a notification advising all dealers pan India to stop collecting such illegal handling/logistic charges





June 2022 The case was completed and orders issued as follows:-

Dealer to return Rs 7500 with 9% interest from date of invoice

Dealer to pay Rs 2 lakh as compensation or penalty for mis leading the Forum that Mahindra allowed them to collect these charges (within 2 months from order else a interest of 10% till realization)

Mahindra may also consider for cancellation of its dealership of its products as Koncept Mahindra has tried to put blame on the manufacturer.

The Transport Dept, Govt of Delhi has to take necessary action against the Dealer for undue charges.



Its been around 40 days so far and no response from Mahindra or Dealer, so what should i do hereon, any suggestions or advice

[raja_ys]

Also observed in majority of cases either one of the party would be absent leading to further dates resulting in longer tenures for case resolutions, inspite of all the difficulties found the Forum to be very friendly and patient enough to hear all parties to a case.

Special thanks to friend and Supreme and High Court Lawyer Mr Abhinav Jain for helping out with the formalities of filing and proceedings during the case.

any suggestions or advice on the below 2 parts:-

Part 1

If in case the Dealer does not appeal at the State Commission;

1. Will the refund be made directly to me or through court?
2. Is the compensation payable to me or payable to court as penalty as in Order pronounced as Compensation or penalty?

3. Will Mahindra stand to ethics and look to cancel the dealership? How will I know what action has been taken?

4. The RTO has not been a party to case and do not know wether an order copy has been forwarded to them, so is it my duty to inform them?



Part 2

In case the Dealer does not adhere to the court order within the stipulated time should I approach a civil court for execution of the order or should i go back to the same District Consumer Redressal Forum for future course of action?

[raginglasers]

Originally Posted by raja_ys

Part 2

In case the Dealer does not adhere to the court order within the stipulated time should I approach a civil court for execution of the order or should i go back to the same District Consumer Redressal Forum for future course of action?

File an Execution Petition before the District Forum, after 45 days from the date of the Order. The time for filing an Appeal to the State Commission is 45 days and please note that before the Appeal is even entertained, the Dealer will have to deposit 50% of the ordered amount with the State Commission.

[thanixravindran]

Originally Posted by raja_ys

Update on my case regarding "Illegal Handling or Logistic charges by Dealers"

Fantastic win, Thanks to your perseverance in getting this done after so many years of waiting. Mahindra dealers still charge handling charges across the country. Will you please upload a copy of the order so that it benefits others?

Generally these companies legal team challenge the verdict towards the end of time limit to prolong the case. So I expect them to challenge it in the next month.

[raja_ys]

Originally Posted by thanixravindran

Fantastic win, Thanks to your perseverance in getting this done after so many years of waiting. Mahindra dealers still charge handling charges across the country. Will you please upload a copy of the order so that it benefits others?

Generally these companies legal team challenge the verdict towards the end of time limit to prolong the case. So I expect them to challenge it in the next month.

You can pls find the full order online with the below details:-

Dated : 13 Jun 2022
Final Order / Judgement
DISTRICT CONSUMER DISPUTES REDRESSAL FORUM-II

Udyog Sadan, C-22 & 23, Qutub Institutional Area

(Behind Qutub Hotel), New Delhi- 110016

Case No.146/16

[Bhupi_BHP]

Cancelling the dealership is next to impossible as koncept had 12 dealerships across Delhi NCR for Mahindra and Hyundai cars out of which majority is Mahindra. This was a few years ago. So, Mahindra would hardly end their business with such a large group.

[wooka]

Yeah nah they're big scamsters and I will refuse to give any incidental charges for subsequent deliveries. I'm in half a mind to press for a refund of my Thar's incidental charges and mandatory accessories, citing this case.

I met another gentleman at Koncept sector 2 last month who had bashed his DEF plate in... He got his 10k refunded. He pressurized them right.

Lastly, Koncept sector 2 noida is a known scamster.
Despite giving it to me in writing that I'd get my XUV price locked, with a company stamp etc.,they're now trying to sell it to me at an inflated price.

[Tanmay007]

Originally Posted by raja_ys

Mahindra later issued a notification advising all dealers pan India to stop collecting such illegal handling/logistic charges

I was wondering what made Mahindra stop handling charges, now I know. Your efforts have actually made a big impact in stopping this unfair practice. No Mahindra dealer in Mumbai (or Maharashtra) charges handling fees anymore.

[BrakeDancer]

Hi, first things first. Kudos on seeing out the case through such a long time span, and winning. Not everyone has the grit for it and we need more people ensuring they aren't taken for a toss by the dealers/manufacturers. I'll try and answer the questions you have because I'm part of the legal profession, however, do follow the specific advise of your counsel for anything directly related to the order.

1. The refund is to be made to you along with interest. The dealer will need to submit proof of this to the Court/forum as per the timeline cited in the order for complying with the said order.

2. The compensation is not to be paid to you. It's a penalty on the dealer for misleading the Court/forum.

3. Well, on this, frankly it's upto Mahindra. They aren't obligated to sever ties with the dealership but they can if they think it's hurting their reputation. They may, or may not continue that relationship.

4. If the order specifically mentions the Transport Department, Government of Delhi then a copy of the Order would automatically be sent to the said department. You should check with your counsel on this.

Part 2- As someone has mentioned hereinabove, an execution petition for enforcement of your order can be filed with the same forum/court that passed the order, after the stipulated time period. Please check with your counsel what this time period is.

I doubt the dealership would appeal this decision, assuming they have retained competent lawyers. But this is India, where admitting you're wrong is worse than murder, and appeals are used as a tactic to stall. A simple conversation between your counsel and the ones on the other side would make this a bit more clear. I wish you the best of luck.

[SideView]

Originally Posted by raja_ys

Update on my case regarding "Illegal Handling or Logistic charges by Dealers"

This shows with persistence and effort anything is possible. Hats off to you brother for seeing it through.

Now only if we can take up similar ad-hoc rulings from the government (odd even rule/ethanol blending/10 year deisel rule) to court and not be sitting ducks!

[dular]

Amazing story ! What persistence !

I just wish I had that kind of stamina and will power to make things right. I am glad to hear such kind of people still exist who refuse to take that "chalta hai" attitude.

[McLaren Rulez]

So much for Anand Mahindra and Twitter and all that.

The dealer is a scumbag but how does Mahindra expect customers to trust them when they fight over a simple Rs. 7500 dispute and later won't admit they were wrong?