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Kia dealer delays delivery of Rs 39L Carnival; commission awards Rs 2.33L to customer

By · Via Times of India · Published by Everything Blog

In short

The dispute originated when RR Investor Capital Services deposited Rs 1 lakh in December 2021 for a Kia Carnival Limousine 7-seater, expecting delivery by February 2022. Instead, the dealership altered proforma invoices and continually delayed handover, leading the commission to find the vendor guilty of service deficiency. The commission also struck off the dealer's defence in January 2023 because it missed the statutory deadline to file a written statement. Jayanti Motors must now settle all compensation, litigation costs, and interest payments within six weeks.

Key points

  • Dealerships bear direct legal and financial responsibility for failing to supply booked v…: Dealerships bear direct legal and financial responsibility for failing to supply booked vehicles and altering agreed price terms.
  • Automakers remain protected from consumer compensation claims if their retail partnership…: Automakers remain protected from consumer compensation claims if their retail partnerships function on a principal-to-principal framework.
  • Failure to pay the awarded consumer compensation within six weeks will escalate the inter…: Failure to pay the awarded consumer compensation within six weeks will escalate the interest rate penalty to 12 percent per annum.

Sources checked by our analysis pipeline: 1

NEW DELHI: A district consumer commission in Delhi has directed an authorised Kia dealer to refund Rs 1.08 lakh to a company that booked a Kia Carnival but did not receive the vehicle despite being promised delivery within weeks. Holding the dealer guilty of deficiency in service, the commission said the vehicle manufacturer could not be held liable for the delay because its relationship with the dealer was on a principal-to-principal basis.

Case background

As per the commission order, RR Investor Capital Services booked a Kia Carnival Limousine 7-seater, in steel silver colour on December 17, 2021, for Rs 38,98,624 through authorised dealer Jayanti Motors. The company paid Rs 1 lakh as a booking amount and was assured that the vehicle would be delivered by the first week of February 2022.

However, the vehicle was not delivered within the promised period. The complainant alleged that the dealer kept postponing delivery on one pretext or another and repeatedly revised the vehicle's price through proforma invoices dated December 17, 2021, January 6, 2022, and April 13, 2022.

The dealer also sent apology…

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