The District Consumer Disputes Redressal Commission (central Mumbai), has directed Mahindra and Mahindra Financial Services Ltd. to give a complainant Rs 4.19 lakh it received after selling his car.
The complainant, Narendra Chaudhury, had taken a loan from Mahindra to buy the car but the vehicle’s possession was taken forcefully by the firm after he defaulted on one of the EMIs.
Mahindra forcefully took possession of car
Mahindra had sought that the defaulted EMI be paid with 36% interest but when Chaudhury went to pay, the financial firm asked for a higher amount and instead took possession of the car forcefully through its agent.
The commission directed an additional Rs 30,000 towards mental agony and litigation cost suffered by Chaudhury. His complaint, though, was heard after imposing a fine of Rs12,000 for delay in pursuing it after being referred by the state commission. It was already rejected once by the district commission.
Complainant defaulted on an EMI in 2009
Chaudhury started paying EMIs in March 2007 and the last EMI was to be in February 2012. He missed paying the instalment of over Rs 25,000 in December 2009 for which Mahindra issued a notice in February 2010.
He complained that Mahindra illegally and forcefully took possession of his car in March 2010 through an agent. He said that he was willing to pay the remaining loan amount but Mahindra sought Rs 1 lakh and took away the vehicle. He filed a complaint to get the vehicle back or Rs 10lakh compensation.
The commission observed that Mahindra’s decision was whimsical. The car was sold to a third party for Rs 4.12 lakh and Mahindra didn’t state under what rules it was done which is unfair trade practice and deficiency in service. Giving relief to Chaudhury, the commission said its order should be implemented within 45 days.
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