Consumer Court fines Tata Motors and Its Dealer for False Mileage Claims in Tiago

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Published on: November 10, 2023 at 11:32 IST

The District Consumer Disputes Redressal Commission in Mandi, Himachal Pradesh, has ruled in favor of a consumer who filed a complaint against Tata Motors Limited, alleging that he was deceived by the company’s misleading mileage claims.

The complainant, Shri Hira Lal, had purchased a Tata Tiago car for ₹4,88,732 from Hi-Tech Satluj Motors Pvt. Ltd., an authorized Tata Motors dealer. In addition to the vehicle’s cost, he spent ₹20,676 on insurance, ₹13,940 for vehicle registration, and ₹356 for a security number plate, amounting to a total investment of ₹5,23,462. The complainant argued that Tata Motors had promised an outstanding mileage of 23.84 kilometers per liter when he made the purchase.

However, upon taking possession of the car, Hira Lal was dismayed to find that the vehicle’s performance fell short of the company’s promises. The car had poor pick-up, and its actual mileage ranged from 12 to 15 kilometers per liter. Additionally, the vehicle had numerous defects, including water leakage through the doors. Despite the complainant’s complaints and even a legal notice, no resolution was provided by the opposing parties.

In their ruling, the District Consumer Disputes Redressal Commission of Sh. Purender Vaidya (President), Sh. Yashwant Singh, and Ms. Manchali (Member) emphasized that the complainant had been misled by Tata Motors’ advertisements and assurances.

The Court stated, “We are satisfied that the complainant was misled by the advertisement of the opposite parties, and he got allured to purchase the vehicle from the opposite party No. 2. The defects of the vehicle stood proved and those were not removed by the opposite parties.”

The Commission also noted a significant disparity between the advertised mileage of 23.84 kilometers per liter and the actual mileage observed by an expert during testing, which was only 15.45 kilometers per liter.

The Court added, “The self-serving affidavit of the opposite party No. 2’s General Manager is not sufficient to rebut the evidence of the complainant.”

As a result of the ruling, Tata Motors Limited and Hi-Tech Satluj Motors Pvt. Ltd. were jointly and severally directed to refund the complainant ₹5,23,462, along with interest at a rate of 6% per annum from the date of the complaint. Additionally, they were ordered to pay compensation in the amount of ₹20,000 and litigation costs of ₹10,000 to the complainant.

The Commission clarified that the complainant must take the necessary steps to cancel the vehicle’s registration certificate and subsequently return the vehicle to Hi-Tech Satluj Motors Pvt. Ltd., marking this as a condition precedent to enforce the final order.

Case: Shri Hira Lal S Vs Tata Motors Limited One Indiabulls Centre

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