Maruti dealer fined Rs.1 Lakh for levying illegal ‘handling charges’

We have been saying that ‘handling charges’ which dealers generally take from the customer are illegal. Now a consumer court in Chennai has ruled these handling charges to be an unfair trade practice. The court has further said that there should be no charges in addition to government fixed fees for registration.

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 Chennai consumer court has ruled.

A Chennai based Maruti car dealer had charged an additional amount of Rs.

18,632 to its customer, C Durgadevi, a resident of Hasthinapuram, Chennai. 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 customer, who has purchased a Maruti Swift Dzire Tour from the dealer – Popular Vehicles and Services Limited.

As per the report, the customer paid On February 11, 2015 she paid Rs. 10,000 as the initial booking amount. The estimate cost of the vehicle was Rs.

7,20,244  which includes the ex-showroom price – Rs.6,13,943 plus insurance cost – Rs.25,873 and road tax / registration charges – Rs.80,428.

The customer paid Rs.2,77,500 in cash on February 18, 2015 and the balance was paid through a loan. The customer was also compelled to pay Rs.1,500 as affidavit charges for registration. A month after the delivery of the car, on receipt of the original registration certificate, she learnt that only Rs.

61,796 was charged as registration charges by the authorities, while the dealer collected Rs.80,428 for the same.

The vehicle dealer in reply said, “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 court has rejected the dealer’s claim and ordered it to pay Rs.1 Lakh as compensation.

This incident is an eye-opener and also a warning to those dealers who charge such amounts under the garb of ‘handling charges’. While car manufacturers do not encourage these extra charges, we feel that they need to be stricter with dealers who indulge in such practices.

Source