Consumer forum slaps Rs 84,000 fine on motor vehicle company, bank for deficiency in service

The company stated that they would arrange the balance amount for the petitioner by arranging a bank loan, following which the petitioner agreed.
Money image used for representational purposes only.
Money image used for representational purposes only. Express

VIRUDHUNAGAR: The District Consumer Disputes Redressal Commission in Srivilliputhur has slapped a fine of Rs 60,000 on a vehicle company and bank over deficiency in service to a customer, and further directed the firm to refund the customer's advance amount of Rs 24,000.

The panel comprising president SJ Chakkkaravarthy and member M Muthulakshmi issued the verdict on a petition filed by P Radhakrishnan, of Rajapalayam, against the manager of a motor company in Sivakasi, owner of a motor company in Rajapalayam, and the branch manager of a bank in Rajapalayam.


In November of 2022, a motor company in Rajapalayam assured the petitioner that he could purchase Rs 1.36 lakh-worth two-wheeler on the day of paying an advance of Rs 24,000. The company stated that they would arrange the balance amount for the petitioner by arranging a bank loan, following which the petitioner agreed.

After making the purchase, the vehicle was registered at the regional transport office by the petitioner. However, respondents from the motor company later told him that the loan had been rejected by the bank, and asked him to settle the balance amount to get his vehicle's Registration Certificate book.

The RC book, however had the bank's hypothecation attached to it. The petitioner then sought a no objection certificate from the company to avail of loan from another bank, and settle the amount. The respondents didn't pay heed to the petitioner's demands and seized his vehicle in March 2023.

The panel observed deficiency in service by the respondents and directed the motor companies' manager and owner to refund the advance amount of Rs 24,000. Further, the three respondents were directed to pay `50,000 for causing mental agony and material loss, and Rs 10,000 as litigation expenses to the petitioner.

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