Mercedes Benz and its Chennai dealer to pay Rs 2 lakh as compensation to buyer

Mercedes-Benz along with its Chennai based dealer have been ordered to pay Rs 2 lakh to a buyer by the national consumer commission, since the company sold them a used demo car.

The National Consumer Disputes Redressal Commission stated that selling a used demo car  without intimating the buyer, is an unfair means of trade which comes under the Consumer Protection (CP) Act.

The NCDRC bench of Justice R K Batta and member Vinay Kumar while ordering compensation to the customer said that selling second hand car model, or renovated, reconditioned, rebuilt or old cars as new ones for pushing its sales graph comes under unfair trade practices. The buyer indeed deserves compensation.

Mukund Reddy brought Mercedes Benz E 250 D car models from the Chennai dealer Trans Cars India Ltd., in the year 1998. After sometime he noticed bubbles on the car body and discolouration on rear. Not only this but the paint on the doors started peeling off as well as the steering wheel of the car started malfunctioning.

Later it was noticed that the used car met with an accident which was mended and sold. The replacement of the car model was asked by the buyer, as he claimed it over the deficiency in service.

The complaint received by the commission was in reference to the paint of the car model and also the music system which was already repaired without any cost. It cannot be marked in the deficiency in service.

The apex forum refused to replace the old car with the new ones stating that it does not come under the manufacturing defects. But it admitted that it has been used for more than 1.85 lakh km.

However, the complaint cannot suffix under the CP Act as it does not stand under the customer criteria as it was sold to the commercial firm. While the judges gave the verdict that the car was being used only by Reddy, the firm's Managing Director and was not for any other commercial purpose. This case came under the unfair trade practice and the forum ordered the German automobile manufacturers along with the dealer to pay Rs 2 lakh to the buyer as compensation.

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