In Oct 2006, Prashant Vyas of Bhavnagar purchased a Tata Indigo from Cargo Motors, Ahmedabad, authorized dealers of Tata Motors Limited. In just two months of purchase, Vyas had to contend with a host of issues with regard to the vehicle.
On seeking help from a local mechanic, Vyas was stunned to learn that the car was, in fact, a second-hand car which the dealer had passed off as a new one. Further inquiries led Vyas to Deepak Shah who was the first owner of the car in May 2006.
Vyas filed a complaint with the Ahmedabad Consumer Court seeking redressal of this issue and compensation of continuous harassment. While Tata Motors had appealed against the order, the final verdict issued by the consumer court held Tata Motors liable. The company has been directed to pay the buyer INR 1 lakh while the dealer, Cargo Motors will have to return price of the vehicle of INR 4.80 lakhs along with INR 60,000 as compensation for mental harassment and litigation costs.
Prashant Vyas says that Tata Motors was also equally guilty for the fact that they did not seek any explanations from the dealer when a new engine was installed on the old car. Why did the company not ask where was the new engine being installed? And if the company knew, why didn’t they seek clarification that on the fact that a new engine was being installed on an old car?
He adds the company did not take any action nor cancel the dealership. This indicates that the company and dealer were actually working hand in glove in this issue to cheat customers by passing off second-hand vehicles for new.