Dealer Fined Heavily by Court for Failing to Transfer Car Ownership After Payment

The West Bengal Consumer Commission has ordered a dealer to pay ₹2.57 lakh to a customer for failing to transfer the car's ownership and for keeping the vehicle in the workshop for years.

A man purchased a used car from a dealer, but the dealer failed to transfer the ownership and dragged the matter out for 10 years. Now, ruling in favor of the customer, the West Bengal State Consumer Commission has imposed a hefty fine on the car dealer. Here are the details of the case.

The customer had agreed to purchase a Maruti SX4 under the 'True Value' scheme on March 10, 2016. The car was priced at ₹3.69 lakh. He paid a booking amount of ₹5,000 and exchanged his father's Maruti Omni, which was valued at ₹1.30 lakh. The customer paid an additional ₹13,000 for registration and ownership transfer. The dealer had assured him that the transfer would be completed within six months.

Accident Six Days After Delivery

The customer received the car on April 5, 2016, but it met with an accident on April 11. Following the accident, the vehicle was taken to the dealer's workshop. The dealer provided an estimated repair cost of ₹53,780, but the repairs were never carried out. The vehicle remained in the workshop for a long period.

Ownership Not Transferred

Subsequently, the dealer did not transfer the car's ownership to the customer's name. According to the Commission, the dealer had not submitted the necessary documents to the RTO by October 2016. The RTO requested that the vehicle be presented for inspection. The customer informed them that the car was at the dealer's workshop. He then sent a legal notice and filed a complaint with the Commission.

Dealer's Argument Rejected

During the court hearing, the dealer argued that the customer had not made the vehicle available for inspection and had not paid the repair costs. The court rejected this argument. It acknowledged that the car was at the dealer's workshop; therefore, it was not appropriate to place the responsibility for inspection on the customer.

Dealer to make payment within 45 days

The Commission upheld the order directing the dealer to pay ₹2.57 lakh. In addition to the principal amount, the dealer must pay 10% annual interest, ₹5,000 as compensation, and ₹5,000 towards legal expenses. The payment must be made within 45 days.