Vehicle dealer to pay Rs 1L fine for extra registration fee

TNN | Updated: Nov 13, 2017, 01:19 IST

Chennai: Charging even a penny in addition to government fixed fees for registration of new cars by car dealers/retailers as 'handling charges' would amount to unfair trade practice, a city consumer court has ruled.

Allowing a complaint moved by an aggrieved consumer, against a city-based Maruti car dealer, the North Chennai District Consumer Disputes Redressal Forum comprising K Jayabalan, president, and M Uyirroli Kannan, member has granted Rs 1 lakh as compensation for the mental agony suffered by the complainant.

C Durgadevi, a resident of Hasthinapuram, Chennai bought a 'Maruti Swift Dzire Tour' through the dealer Popular Vehicles and Services Limited in Pallikaranai.

On February 11, 2015 she paid the initial booking amount of Rs 10,000. She was given an estimate of cost of the vehicle as Rs 7,20,244 (ex-showroom price of Rs 6,13,943, insurance cost Rs 25,873 and road tax and registration charges of Rs 80,428).

Durgadevi paid Rs 2,77,500 in cash on February 18, 2015. The balance was paid through an automobile loan. This apart, she was compelled to pay Rs 1,500 as affidavit charges for registration.

After registration of the car, the vehicle was delivered to her on February 25, 2015. A month later, when she received the original registration certificate, she was shocked to note that only Rs 61,796 was charged as registration charges by the authorities, while the dealer collected Rs 80,428 for the same.

On inquiry, she was informed by the dealer that the additional amount was for handling and service charge.

"The vehicle dealer is only acting as an agent of the buyer and when the customer avails the service of the dealer they are bound to pay the charges incurred for the same, which is informed well in advance to the customer at the time of booking the vehicle," the dealer said. Refusing to accept the contentions, the forum ordered the dealer to pay Rs 1 lakh as compensation to Durgadevi.