A consumer commission in West Bengal has ordered an auto dealer and a car owner to return Rs 2.45 lakh and pay Rs 1.8 lakh in additional costs and compensation to a buyer whose pre-owned SUV was impounded by police because of fake ownership records.
The ruling requires the dealer and the former owner to jointly or individually return the full purchase price of Rs 2.45 lakh alongside a 9 percent annual simple interest rate calculated from the date payment was received until it is fully realized.
Commission Directs Financial Restitution and Penalty
In addition to the vehicle price refund, the commission mandated an extra Rs 70,000 payout to reimburse the buyer for money spent on vehicle insurance, emission test certificates, mechanical servicing, and cosmetic upgrades.
The panel also awarded Rs 1 lakh in damages for emotional distress and harassment suffered by the purchaser, along with Rs 10,000 to cover legal costs incurred during the dispute. The bench further directed the respondents to immediately cease engaging in deceptive commercial practices.
The judgment was handed down by Commission President Duri Venkat Srinivas alongside panel members Moumita Chakraborty and Ranesh Ranjit Mondal.
Police Seizure Triggers Legal Action
The dispute arose after the consumer selected the second-hand vehicle through an online advertisement and completed the transaction by paying Rs 2.45 lakh to an auto trader, receiving the vehicle and transfer paperwork in return.
Following the transaction, the buyer invested nearly Rs 70,000 into maintenance, registration requirements, and vehicle upkeep. However, on July 18, 2021, law enforcement officers arrived at the buyer’s home and confiscated the SUV, stating that the title documents submitted during the sale were fraudulent.
When the seller ceased all communication and ignored the buyer’s repeated attempts to resolve the situation after the seizure, the purchaser approached the consumer forum citing fraud and deficient services.
Panel Rules On Trader Liability
Neither the dealership nor the vehicle’s former owner appeared before the commission to present a defense despite receiving formal notices, prompting the forum to adjudicate the matter ex parte.
The panel concluded that the buyer had acted in good faith without any knowledge of the underlying paperwork fraud. By withholding critical details regarding the vehicle’s legal status, the sellers committed an unfair trade practice and a clear failure of service under the Consumer Protection Act.
The commission noted that because the respondents chose not to contest the proceedings, the allegations stood uncontroverted and were legally treated as admitted.
