Skoda India ordered to pay Rs 20.17 lakhs for selling faulty car

Skoda India Pvt. Ltd. has been instructed by Delhi State Consumer Commission to duly return an amount of Rs.20.17 lakhs ($36,768) to one of their…

Skoda India Pvt. Ltd. has been instructed by Delhi State Consumer Commission to duly return an amount of Rs.20.17 lakhs ($36,768) to one of their customers who had purchased their luxury sedan Superb, back in 2005. Repeated breakdowns and defective parts, pushed the owner to file a complaint against Skoda India for selling a defective car.

The buyer in question has submitted service history records and receipts of expenditure on his Skoda Superb which he bought from the company in April 2005. This particular Skoda Superb has made 33 visits to service centers for repairs and rectification of manufacturing defects which has cost the buyer Rs.1.65 lakhs. The vehicle which covered just 16,000 kms and needing servicing 33 times meant that the vehicle itself was defective.

The bench reviewed this special case and asked the company to refund said amount after taking into consideration depreciation of the car value. The vehicle was bought in 2005 while the complaint was filed in 2008. It was purchased by Viney Sagar Sahgal of Uttar Pradesh for an amount of Rs.22,98,375 ($41,898), while he spent close to Rs.2 lakhs on repairs which commenced since the day of purchase.

Defects included stalling of engine, brake failure and air conditioning problems all of which caused the buyer tremendous mental harassment and financial loss. Skoda on their part refuted the claim saying that these repairs were carried out successfully, however the bench has instructed them to compensate the buyer accordingly. Of the Rs 20.17 lakhs, Rs 2.5 lakhs is to be paid as compensation for the trouble Mr Sahgal underwent and Rs 17.67 lakhs is the calculated car value after depreciation.

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