A 7-month-old CVT automatic car experienced a steering wheel malfunction during a family trip from Delhi to Gangotri Dham on May 3, 2023. According to Economic Times, the Electronic Steering Column Lock (ESCL) failed, causing the steering to jam and resulting in an accident. The car owner, Jindal, had purchased MG Shield Warranty Extension and MG Shield RSA (Road Side Assistance) Extension plans valid from October 27, 2022 to October 27, 2027. While driving from Delhi to Dehradun, he encountered a tyre puncture but the Tyre Pressure Monitoring System (TPMS) failed to alert because three of its sensors were faulty. MG Delhi service centre charged Rs 3,000 and replaced the faulty TPMS sensors, but the car was still malfunctioning when it reached Dehradun.
When Jindal requested a loaner car on June 5, 2023, the technician demanded Rs 10,000 for the service. Since Jindal refused to pay, he was left stranded at the accident site with his family, including minor children. Very dissatisfied with the car, Jindal sent a legal notice from his advocate on June 21, 2023, which remained unanswered. Thereafter, he filed a consumer complaint on July 27, 2023, with the North Delhi Consumer Dispute Redressal Commission (Consumer Complaint No.: DC/80/RBT/CC/54/2024). As per Economic Times, the consumer commission found that MG Motors failed to provide on-site assistance when the ESCL fault was reported, leading to the accident as the steering wheel got jammed while driving to the Dehradun service centre.
The North Delhi Consumer Commission ordered MG Motors to refund the purchase value of Rs 18.23 lakh along with interest at 7% per annum since July 26, 2023, within four weeks from the date of receipt of the order. According to Economic Times, the commission also directed MG Motors to pay Rs 4 lakh in compensation and litigation expenses to the complainant. The court noted that despite having the vehicle in its workshop, MG Motors failed to examine the vehicle on the false pretext that Jindal had not allowed thorough examination. The commission held that MG Motors is responsible for deficiency of service as well as for selling the vehicle having manufacturing defects. Since the car has been in the Dehradun service centre for more than three years, the commission cannot order MG to repair the car and make it roadworthy as other issues might have cropped up due to such long idle time.
The ruling reinforces that manufacturers cannot automatically add service charges to bills without clear customer consent. As reported by Economic Times, Advocate Gaurav Gaur stated that in his view, an expert report is not mandatory in every consumer dispute. In the present case, the admitted defects, service history and failure of the manufacturer to provide warranty support constituted sufficient evidence for the consumer commission to hold the manufacturer liable for deficiency in service and manufacturing defect. The commission's judgment specifically rejected MG Motors' defense that the charge was in the nature of a 'staff contribution' disclosed in its menu, noting that such levies require clear transparency and prior disclosure. The commission emphasized that mechanical and electronic failures cannot be attributed to the driving style of the driver, pointing towards instrumental and software failure in the electronic system of the vehicle.
The ruling comes after the Delhi High Court upheld CCPA guidelines in March last year, with an appeal against this ruling currently pending before the High Court. According to Economic Times, the commission held that even if terminology was different, restaurants had a duty to disclose charges clearly and obtain consent. Alay Razvi noted that under the Consumer Protection Act 2019, automatically adding such levies without clear prior consent constitutes an unfair trade practice. The judgment serves as a caution for restaurants adopting unfair practices and gives consumers confidence to pursue cases even for small unauthorized fees. The ruling adds to growing consumer scrutiny around automatic charges on bills, with consumer forums repeatedly emphasizing that customer consent remains essential.
