Delhi panel orders Mercedes-Benz to refund Rs 1.78 crore for defective car

New Delhi: The Delhi State Consumer Disputes Redressal Commission has directed Mercedes-Benz to refund over Rs 1.78 crore to a complainant who purchased an electric car that suffered repeated manufacturing defects. The commission also ordered the company to pay Rs 5 lakh for mental agony and Rs 50,000 towards litigation costs.

The complaint against Pune-based Mercedes-Benz India and its authorised franchise partner Global Star Auto LLP in Okhla stated that the electric car had been sent to the workshop four times. After being handed over for repairs in October 2023, the vehicle reportedly remained in the company’s possession, with no response to a legal notice.

In an order dated September 12, the commission, comprising president Justice Sangita Dhingra Sehgal and judicial member Pinki, said, "Based on the admissions made by the opposite parties, it is evident that the car in question was sent for repairs on multiple occasions within a short span of one year from the date of purchase (on November 2, 2022). This establishes that the fault in the vehicle in question arose due to a manufacturing defect."

The panel noted that it was the manufacturer’s duty to replace the defective car, but Mercedes-Benz had neither replaced it nor rectified the defects. "Therefore, we are in consonance with the contention of the complainant and hold that there is a clear deficiency in service on the part of the opposite party 1 (Mercedes-Benz)," the commission added.

The commission observed that the car remained in the Okhla workshop and that the model had been discontinued. "The important issue before us is how the complainant is to be compensated, given that the opposite party 1 has already withdrawn the model of the car in question from the Indian market. In these circumstances, we are left with no other alternative but to direct a refund of the entire purchase price of the said vehicle to the complainant," the order stated.

The refund directed includes the ex-showroom price, insurance, tax collected at source (TCS), road tax, other statutory levies, and interest borne on the loan.