Toyota told to pay Rs 50 lakh to Hyderabad man

Holding all parties responsible for deficiency in service and unfair trade practices, it ordered them to pay Rs 5 lakh in compensation and a refund of Rs 45 lakh with an interest rate of 9% per annum.
For representational purposes only
For representational purposes only(File Photo | PTI)

HYDERABAD: The District Consumer Disputes Redressal Commission-II, Hyderabad, has ordered car company Toyota and its retail showroom in the city to pay a compensation of Rs 5 lakh along with a refund of Rs 45.57 lakh for failing to deliver a vehicle booked by the complainant, for which he also obtained loans from the bank at high interest rates.

The complainant, Ramesh Mali, said he booked a Fortuner model car at the company’s showroom in Sanathnagar in January 2022 and paid an amount of Rs 45 lakh to the latter. Apart from the loan, the consumer said he was also paying an EMI of Rs 45,548 to private financers. Mali, however, added that the opposite party failed to deliver the vehicle despite repeated reminders and claiming a short supply of cars.

In its defence, Toyota asked the Commission to dismiss the complaint against it, contending that the accused retail outlet had entered into a dealership agreement with it, which it terminated after the former closed down the showroom abruptly. But the Commission denied it. However, citing the principal-agent relationship, the bench observed that Toyota failed to take any remedial measures over the fraud. Holding all parties responsible for deficiency in service and unfair trade practices, it ordered them to pay Rs 5 lakh in compensation and a refund of Rs 45 lakh with an interest rate of 9% per annum.

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