Replace defective Innova or refund Rs 32 lakh with interest

In a significant consumer rights verdict, the Udupi District Consumer Disputes Redressal Commission has ordered a car manufacturer and its dealer to either provide a replacement vehicle or refund the full value of a defective Toyota Innova sold to a customer.

According to the complaint, Shravan Kumar, a resident of Kachchur in Brahmavara taluk, had purchased a Toyota Innova from United Toyota Pvt. Ltd., Udupi, on November 16, 2022, with a five-year warranty. However, within just a month and after only 1,000 km of use, the car began showing serious manufacturing defects specifically, the right-side tires were wearing out and getting damaged on their own.

Despite repeatedly bringing the issue to the dealer’s notice, the problem was not rectified. The service centre claimed there was no manufacturing defects and returned the vehicle to the owner. Even after 5,000 km, 10,000 km, and the third scheduled service, the defect persisted. The dealer later sent the tires, made by Bridgestone, for re-examination, but the company reported that the tires had no defects.

Failing to receive any resolution, Shravan Kumar issued a legal notice to both the car dealer and the manufacturer, but received no reply. Subsequently, he filed a formal complaint before the Udupi District Consumer Commission against the car manufacturer, the dealer, and the tire manufacturer for negligence and deficiency in service.

After detailed hearings, the Commission ruled that the car indeed had a manufacturing defect and directed the manufacturer and the dealer to replace the vehicle with a new one of the same model or refund ₹32,08,952 the value of the car at the time of purchase with 9% annual interest applicable from November 16, 2022. Additionally, the Commission ordered the respondents to pay ₹50,000 as compensation for mental agony and ₹10,000 towards litigation costs, all within 45 days.

The case was argued on behalf of Shravan Kumar by senior Udupi-based advocates Gangadhar H.M. and Vipin Jattan, who welcomed the ruling as a landmark victory for consumer protection in the

automobile sector.