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Car firm to shell out Rs 1 lakh for ‘unfair trade practice’

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Express news service

Posted: Mar 06, 2008 at 0037 hrs IST

Chandigarh, March 5 The Consumer Disputes Redressal Forum has directed an automobile firm to pay compensation of Rs 1 lakh to a resident of Sector 29 for unfair trade practice.

Ultimate Auto Mobile Private Limited has also been directed to reimburse the money spent by the petitioner on insurance along with Rs 5,500 as costs of proceedings.

Kharati Lal Handa, the petitioner, had approached the firm to buy a Santro in July 2007 and was subsequently directed to approach ICICI bank for loan. He was thereby asked to submit his income tax returns, statement of bank account and post dated cheques along with 25 per cent of the showroom price of the car after which he was sanctioned the loan in July 2007. Handa stated that the automobile firm had offered a scheme of the rebate of Rs 10,000 on total price of the car he was buying at the disposal of the old car.

The new car was delivered to the petitioner in July 2007 and was allotted a temporary number. Handa pointed out that prior to the expiry of temporary number, he approached the automobile firm for issuance of sale letter to get the car registered.

He alleged that he met the officials at the firm several times but his request was not entertained. The firm stated that Handa did not deposit some documents so he was not given the benefit of rebate of the car that he had exchanged. The firm alleged that the sale letter was ready but the petitioner did not collect it.

The forum headed by Jagroop Singh Mahal observed: “If the petitioner did not collect the sale letter then the automobile firm could have delivered it to him through registered post or by courier. But there is nothing in the present case to suggest the bonafide of the automobile firm. The firm is further directed to issue sale letter to the petitioner immediately.”

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