Delhi Consumer Court Slaps Car Dealer with Penalty for Selling Vehicle with Unpaid Challans

A consumer court in Delhi has issued a stern ruling against a car dealer who sold a second-hand Hyundai Creta with outstanding traffic challans worth ₹28,500 to a young woman, and then failed to clear them despite a written promise.

According to the court documents and statements by the complainant’s lawyer, Advocate Ocean Chaudhary, the woman, a resident of Dayalpur, had purchased the used vehicle from a dealership in Pitampura on May 27, 2022. During the transaction, it came to light that the car had 14 pending challans totaling ₹28,500. The dealer assured her in writing that the dues would be cleared within three days — a commitment made on stamped paper.

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However, months passed and no payment was made. By September 2022, the dealer had stopped taking calls from the woman. In response, she issued a legal notice via WhatsApp on September 19 and through speed post on September 22. Despite this, the dealer remained unresponsive.

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With no recourse left, the woman approached the consumer court in Nand Nagri. When the dealer failed to appear even during court proceedings, the court proceeded ex parte — a one-sided hearing — and ruled in favor of the complainant.

The court ordered the dealer to pay the ₹28,500 challan amount with 9% annual interest from the date of the transaction until full payment is made. Additionally, the court directed the dealer to pay ₹20,000 as compensation for mental harassment and litigation expenses — also to accrue 9% interest until paid.

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Advocate Chaudhary presented evidence including the car delivery receipt, the dealer’s written undertaking, and a list of pending challans. “This is a case of clear deception. My client was misled, and the dealer failed to uphold a signed commitment,” said Chaudhary.

The woman had originally sought ₹2 lakh in damages, including interest and legal costs. Though the court awarded less than the demand, it underscored the importance of fair practice in used vehicle sales and consumer protection.

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