Chhattisgarh Consumer Commission Orders Full Refund or New Car for Rs.1 Crore Defective Lexus

The case was filed by Raipur-based Shivahari Engineering Ltd., which purchased a Lexus hybrid car (Model TG350H) for Rs.1,01,31,174 in October 2023 for the personal use of its company chairman.

A Troubled Purchase from the Start

The problems began immediately. The vehicle, the first of its model in Chhattisgarh, faced a six-month registration delay due to the company's failure to provide necessary documents. Soon after delivery, the car developed critical technical faults, including starting problems and a dangerous tendency to shut down abruptly while driving. A severe battery and current leakage issue was also identified, posing a safety risk.

Attempts to repair the car only worsened the situation. Despite promises to service the vehicle in Mumbai or Delhi, the company sent it to Bhubaneswar. It was returned four months later with over six new dents and scratches, and the original technical defects remained unresolved.

Commission Rejects Company's Arguments

During the proceedings, the car manufacturer argued that a corporate entity like Shivahari Engineering did not qualify as a "consumer." The commission rejected this, stating that the car was bought for personal use, firmly placing it under the purview of consumer protection law.

The bench, presided over by Justice Gautam Chauradia, found conclusive evidence of a "manufacturing defect." It noted that the persistent current leak in a hybrid vehicle constituted a serious safety hazard and that the company had failed to rectify the issue despite multiple opportunities.

The Final Order

The commission issued a firm directive, giving the companies 45 days to comply with one of two options:

1.  Provide a New Car: Supply a new car of the same model and bear all registration expenses.

2.  Full Refund with Interest: Refund the entire car price of Rs.1,01,31,174 plus the registration cost of Rs.9,95,000, with 6% annual interest. Failure to pay within 45 days would increase the interest rate to 9% per annum.

Additionally, the companies were ordered to pay Rs.50,000 as compensation for mental agony and Rs.15,000 for litigation costs.

This ruling sets a powerful precedent, affirming that the presence of a manufacturing defect makes any consumer individual or corporate eligible for justice, regardless of the product's price tag.