Rs 1.57 crore SUV ‘fails’ within weeks, buyer wins replacement, Rs 2.2 lakh payout

“A brand new luxury vehicle is expected to give a smooth and worry free experience and there ought not to be any necessity for a new car to go to work shop on several occasions for repairs within a short span of nearly a month of its purchase…vehicles which suddenly come to a complete halt on the road, are a serious risk to public safety,” the commission said on August 11.

The dispute began after the company, Fena, booked a Land Rover Defender P400 110 HSE on February 17, 2023, for an initial quoted price of Rs 1.54 crore. Delivery was promised for July 2023, but the SUV was delivered only on November 3, 2023. Fena eventually paid Rs 1.57 crore for the vehicle.

Problems started in weeks

According to the commission, the vehicle developed serious problems within five weeks of delivery after being driven about 800 km, including engine misfiring, abnormal vibrations and repeated stalling. Fena took it to the authorised dealer on December 15, 2023, where it remained for around two and a half months.

The job cards recorded engine misfiring, replacement of the ‘Continuous Variable Valve’ assembly, battery and spark plug, coolant leakage, wiring repairs and other issues.

The dealer said the vehicle was repaired under warranty and that replacing the components did not by itself prove an inherent manufacturing defect. But after being declared roadworthy on February 26, 2024, the SUV broke down again on March 26, coming to a complete halt on the road before being towed to a service station.

Not consumer: Jaguar

Jaguar Land Rover India argued that Fena, being a company, was not a “consumer” and that there was no direct contract between Fena and the manufacturer. The commission rejected both objections, noting that the SUV was bought for the personal use of Fena’s director and his family and that there was no evidence that it was used for commercial purposes.

Relying on a Supreme Court ruling, the consumer forum held that a vehicle bought by a company is not automatically a commercial purchase. It also held that the lack of a direct sale contract did not defeat the complaint, as the dispute concerned alleged defects in a vehicle manufactured and warranted by Jaguar Land Rover.

Commission on delivery delay

The commission also found deficiency in service in the vehicle’s delivery. It recorded that the dealer initially promised delivery in July 2023, later committed to August and then promised the vehicle would be available on October 5. It was ultimately delivered on November 3, 2023. Fena had also paid Rs 10 lakh following the August commitment.

After waiting for months, the firm received the vehicle without certain ordered accessories worth Rs 98,440. The commission noted that the raised air intake and ladder had not been installed and held that the delayed delivery and handing over of the vehicle without the promised accessories amounted to a deficiency in service.

The commission directed Jaguar Land Rover India and AMP Motors South Delhi to jointly and severally replace the Defender with a new vehicle of similar make and model. If replacement is not possible, they must refund Rs 1.57 crore with 6 per cent interest from the date of booking until August 11, 2026. They must also pay Rs 2 lakh compensation for delayed delivery, mental agony and harassment, and Rs 20,000 as litigation costs.

The directions must be complied with by October 11, 2026. If they fail to do so, the amount will carry 9 per cent interest from the date of booking until actual realisation.

Takeaway

A new vehicle repeatedly developing serious problems soon after delivery can amount to deficiency in service, particularly when repeated repairs fail to permanently resolve the issue. The commission also made clear that a company-owned vehicle is not automatically a commercial purchase if it was bought for the personal use of its director and there is no evidence of commercial use.

Consumers facing similar grievances may contact the consumer helpline in their respective states (Delhi: 011-23379146) or dial the National Consumer Helpline at 1915 for assistance.

Don’t miss out on these stories:

Insurer rejects child’s hospitalisation claim as ‘unnecessary’, father wins Rs 94,000 payout

Policy cancelled over ‘hypertension’, insurer ordered to restore it, pay Rs 1.10 lakh

Kerala man loses money to scratch card ‘fraud’, bank to refund, compensate