SC slams car dealers for illegal charges
Expressing strong displeasure against the “game” played by car dealers as they continue to levy thousands of rupees from buyers towards logistics and other charges without government authorisation, the Supreme Court on Monday sought an explanation from them after questioning the very foundation of these miscellaneous charges.
“You have made these charges look like a government levy when it is not. How can you charge them when you have not been authorised? Where are the rules in the Motor Vehicles Act that authorise you? It is sort of game that you are playing with the customers. It seems your manufacturers have told the commission they are expected to pay to you, you can pass them on (to) buyers,” a Bench headed by Justice D K Jain said.
The court issued a notice to the Automobile Dealers Association on a petition filed by C Rajaram, who had alleged that malpractices were being carried out by car dealers in Delhi as they charged fees for handling, loading-unloading, service and logistics in an unauthorised and illegal manner.
His counsel Joseph Aristotle told the Bench that the Delhi High Court had erred in holding that complaints of over-charging had to be decided on a case-to-case basis and no general directions could be passed.
The petitioner said the charges vary between Rs 3,500 and Rs 25,000 per vehicle, depending on the make and cost. A sum of more than Rs 550 crore has been collected by car dealers since 1999, it claimed.
Senior advocate Sandeep Sethi,
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