CAR DEALER PAYS PENALTY FOR NOT DELIVERING CAR IN TIME

INTRODUCTION

The District Consumer Disputes Redressal Commission, Ernakulam (Kerala) recently ruled in a case where a car dealer unfairly retained a booking advance after a consumer cancelled due to indefinite delivery delays. This was deemed a deficiency in service and an unfair trade practice under the Consumer Protection Act, 2019.

Facts and Background

The Complainant booked a Mahindra Thar in July 2022 and paid an advance of ₹21,000 to the dealer. Due to prolonged and indefinite delays in delivery, he followed up multiple times and eventually cancelled the booking, requesting a refund. The dealer refused to return the amount despite repeated requests.

Observations

The Commission, along with members, ordered the dealer (opposite parties) to:

Refund the booking advance of ₹21,000 along with 12% interest per annum from the date of booking until realization/payment. Pay ₹15,000 as compensation for the mental agony, hardship, and inconvenience caused to the consumer. Pay additional costs of the proceedings with the total compensation and costs amounting to ₹15,000 in the reported directives. The dealer was required to comply within 45 days from the order date.

Conclusion

This ruling was reported in mid-to-late January 2026. It highlights that car dealers cannot withhold booking amounts arbitrarily after cancellation prompted by their own delivery failures.

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