Chandigarh man sold banned BS-III bike receives 50,000 compensation


The sale of a Bharat Stage-III vehicle, which is not permitted on Indian roads, cost a motorcycle manufacturer, its authorized dealer and the finance bank dearly.

The District Consumer Disputes Redressal Forum, Mohali, asked the dealership, Bedi Auto Wings LLP, Industrial Area, Phase 3, Mohali, to reimburse ??91,440, the price of the motorcycle, with an interest of 12%, to the plaintiff, a resident of colony number 4, industrial zone, phase 1.

The dealer ; the manufacturer, Suzuki Motorcycle India Private Ltd; and IDFC First Bank Limited, which financed the vehicle, were also asked to pay jointly and severally ??50,000 as compensation to the complainant within 30 days.

Since April 1, 2017, the Supreme Court has banned the sale and registration of Bharat Stage (BS) -III vehicles to make way for more environmentally friendly BS-IV vehicles.

However, the plaintiff, Rakesh Yadav, was sold a BS-III motorcycle by the car dealership on April 11, 2017.

Yadav was caught off guard when the two-wheeler registration was rejected by the Chandigarh Registration and Licensing Authority, as instructed by the SC. When he approached the dealership for a refund, his requests fell on deaf ears.

Having dealt with his complaint, the forum found that the dealership ridiculed the complainant by taking advantage of his innocence and sold a vehicle that was not authorized by law.

Also holding the manufacturer guilty, the forum said, “We believe the manufacturer is also responsible for the harmful activities of the authorized dealer… It was the responsibility of the manufacturer to immediately recall or remove all vehicles from various locations across India. , as and when he was informed of the ban on the sale and registration of these vehicles. The manufacturer cannot escape his responsibility by providing us with an agreement with an authorized dealer.

The order also stated that IDFC First Bank Limited should not have financed the vehicle and claimed interest on it either, as it was fully aware that this specific vehicle was not allowed on the roads and that its registration had been banned.

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