Dealer sold ‘test-drive’ car as brand new; buyer wins over Rs 9.2 lakh payout
The NCDRC ruled that Tata Motors is not liable for a dealer selling a test-drive vehicle as brand new. The court held the dealer solely responsible for the deceptive sale and the resulting compensation.
Why it matters
This ruling clarifies the legal distinction between manufacturers and dealerships regarding consumer fraud and liability.
NEW DELHI: The National Consumer Disputes Redressal Commission (NCDRC) has held that Tata Motors, as the manufacturer, cannot be held liable for a dealer selling a test-drive vehicle to a customer as a brand-new car, setting aside a state commission order that had made the manufacturer jointly liable along with the dealer, in its order dated July 15.Why did the buyer claim he was sold a demo car?According to the court order, the complainant had purchased a Tata Manza Elan from the dealer, M/s Hind Motors India, in October 2011 for around Rs 7 lakh. Soon after delivery, he found several defects in the car, which the dealer failed to fix despite repeated visits to the workshop.
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