Consumer commission directs Mercedes-Benz to refund over Rs 1.78 crore purchase amount

New Delhi, Sep 18 (PTI) A Delhi consumer commission has directed Mercedes-Benz to refund an electric car's purchase amount of over Rs 1.78 crore, besides paying Rs 5 lakh to a complainant for causing mental agony by not rectifying a manufacturing defect.

The Delhi State Consumer Disputes Redressal Commission was hearing a complaint alleging that the purchased electric car had been sent to the workshop four times, and after being handed over for repairs in October 2023, the vehicle remained in the company's possession.

The complaint against Pune-based Mercedes-Benz India Pvt Ltd and its authorised franchise partner Global Star Auto LLP in Okhla here said that no reply was received on a legal notice, and the opposite parties were liable for deficiency in service.

In an order dated September 12, the commission, comprising its president Justice Sangita Dhingra Sehgal and judicial member Pinki, said, "Based on the admissions made by the opposite parties, it is evident that the car in question was sent for repairs on multiple occasions within a short span of one year from the date of purchase (on November 2, 2022)." "This establishes that the fault in the vehicle in question arose due to a manufacturing defect," the commission said.

It was the manufacturer's (Mercedes-Benz) duty to replace the "defective car", but it did not change it, nor did the company rectify the manufacturing defects, it said.

"Therefore, we are in consonance with the contention of the complainant and hold that there is a clear deficiency in service on the part of the opposite party 1 (Mercedes-Benz)," the commission said.

It noted that the car was still in the Okhla workshop and the vehicle model had been discontinued.

"The important issue before us is how the complainant is to be compensated, given that the opposite party 1 has already withdrawn the model of the car in question from the Indian market. In these circumstances, we are left with no other alternative but to direct a refund of the entire purchase price of the said vehicle to the complainant," the commission said.

It directed the manufacturer to pay "the entire purchase amount" of around Rs 1.78 crore, including the ex-showroom price, insurance amount, tax collected at source (TCS), insurance, road tax, other statutory levies and interest borne on the loan.

The commission directed Mercedes-Benz to "further pay a sum of Rs 5 lakh as cost for mental agony and harassment to the complainant; and the litigation cost of Rs 50,000." PTI MNR RHL