Mercedes-Benz told to pay Delhi man Rs 1.78 crore for ‘manufacturing defect’ in car
Luxury car bought for Rs 1.55 cr in Nov 2022 ran into problems after just six months; buyer awarded cost of car, insurance, taxes, and interest on loan. What was Mercedes’ defence?
The Delhi State Consumer Disputes Redressal Commission has directed Mercedes Benz India Pvt Ltd to pay a buyer Rs 1.78 crore as compensation for a defective car.
“It is pertinent to mention that although the car was brand new, within six months of purchase, its battery pack had to be replaced. This raises concerns about the presence of a manufacturing defect,” the Commission said in its order dated September 12.
“The persistence of such defects can reasonably be attributed to faults existing at the time of manufacture, as minor defects can easily be diagnosed and rectified and would not require numerous visits to the workshop,” it said.
Gurvinder Khurana, director of Samran Media Consultants Pvt Ltd had bought the car, a Mercedes-Benz EQS580 for Rs 1.55 crore in November 2022.
According to the customer, shortly after the purchase, when the car had run for just 9,000 km, multiple problems surfaced – a bulge in the rear tyre, sudden stoppage, radar sensor failure, malfunctioning of the sensor, a humming noise from the AC blower, etc.
Despite multiple visits to the workshop, the problems persisted, the customer said.
After hearing the consumer’s submissions, the Commission noted: “We find that the issues in the car arose within six months from the date of purchase and have continued to persist to date, despite repeated interventions by the opposite parties”.
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Mercedes Benz argued that the complainant was not a ‘consumer’ under the Consumer Protection Act, 2019, as the car had been purchased for a commercial purpose. It also submitted that the Commission lacked territorial jurisdiction to entertain the complaint, and that no expert evidence had been provided by the complainant to prove a manufacturing defect.
The Commission, comprising its president Justice Sangita Dhingra Sehgal and Member (Judicial) Pinki, rejected these submissions.
“The important issue before us is how the complainant is to be compensated, given that Opposite Party No.1 has already withdrawn the model of the car in question, namely the Mercedes Benz EQS580, from the Indian market. In these circumstances, we are left with no other alternative but to direct a refund of the entire purchase price of the said vehicle to the complainant,” it said.
To decide the compensation, the Commission considered the cost of the car, insurance and road tax (Rs 3.1 lakh), tax collected at source (Rs 1.55 lakh), and interest on a loan of Rs 1 crore for 60 months (Rs 16 lakh).
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It also directed Mercedes Benz to pay the consumer Rs 5 lakh for mental agony and 50,000 towards litigation costs.
Nirbhay Thakur is a Senior Correspondent with The Indian Express who primarily covers district courts in Delhi and has reported on the trials of many high-profile cases since 2023.
Professional Background
Education: Nirbhay is an economics graduate from Delhi University.
Beats: His reporting spans the trial courts, and he occasionally interviews ambassadors and has a keen interest in doing data stories.
Specializations: He has a specific interest in data stories related to courts.
Core Strength: Nirbhay is known for tracking long-running legal sagas and providing meticulous updates on high-profile criminal trials.
Recent notable articles
In 2025, he has written long form articles and two investigations. Along with breaking many court stories, he has also done various exclusive stories.
1) A long form on Surender Koli, accused in the Nithari serial killings of 2006. He was acquitted after spending 2 decades in jail. was a branded man. Deemed the “cannibal" who allegedly lured children to his employer’s house in Noida, murdered them, and “ate their flesh” – his actions cited were cited as evidence of human depravity at its worst. However, the SC acquitted him finding various lapses in the investigation. The Indian Express spoke to his lawyers and traced the 2 decades journey.
2) For decades, the Jawaharlal Nehru University (JNU) has been at the forefront of the Government’s national rankings, placed at No. 2 over the past two years alone. It has also been the crucible of campus activism, its protests often spilling into national debates, its student leaders going on to become the faces and voices of political parties of all hues and thoughts. The Indian Express looked at all court cases spanning over two decades and did an investigation.
3) Investigation on the 700 Delhi riots cases. The Indian Express found that in 17 of 93 acquittals (which amounted to 85% of the decided cases) in Delhi riots cases, courts red-flag ‘fabricated’ evidence and pulled up the police.
Signature Style
Nirbhay’s writing is characterized by its procedural depth. He excels at summarizing 400-page chargesheets and complex court orders into digestible news for the general public.
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