Consumer court orders Kia to refund cost of defective Seltos

Awards Rs 1.5 lakh compensation

THE GOAN NETWORK | 4 hours ago

PANAJI

The District Consumer Disputes Redressal Commission, South Goa, has directed Kia’s Goa dealer and its senior management to refund the entire sale consideration of a Kia Seltos to a Salcete resident, holding them jointly and severally liable for deficiency in service and unfair trade practice.

The order was passed by Commission President Sanjay Chodankar and Member Jayson Rodrigues on a complaint filed by Jose Fernandes of Salcete against the Manager of Kia Goa, the Managing Director of Kia India at Gurugram, the Manager of Kia Head Office at Anantapur in Andhra Pradesh, and the Manager of the State Bank of India, Majorda branch.

The Commission directed Opponents 1, 2 and 3 to refund the entire sale consideration paid towards the Kia Seltos, together with registration charges, road tax, hypothecation endorsement charges, mandatory insurance, FASTAG and other compulsory statutory expenses.

It ordered that the refunded amount be first appropriated towards full and final closure of the outstanding vehicle loan availed from the Majorda branch of State Bank of India, as on the date of actual closure, irrespective of any escalation due to interest or passage of time. Upon such payment, the bank has been directed to issue a No Due/Loan Closure Certificate, terminate the hypothecation and hand over all necessary closure documents.

“Any surplus amount remaining thereafter (comprising inter alia the booking amount of Rs 25,000, payment of Rs 3,32,800 and loan instalment of Rs 22,400) shall be directly paid to the complainant,” it added.

The Commission further directed Opponents 1, 2 and 3 to jointly and severally pay Rs 1 lakh towards compensation for mental agony and harassment and Rs 50,000 towards litigation costs, aggregating to Rs 1.5 lakh. The amounts will carry interest at 10 per cent per annum if not paid within the statutory appeal period.

Fernandes had approached the Consumer Court seeking relief into the matter wherein he booked a brand new Kia Seltos with the Goa dealer on February 4, 2023, by paying Rs 25,000 in cash, followed by a down payment of Rs 3,32,800 through RTGS on February 9, 2023. The balance amount of Rs 14 lakh was financed through a vehicle loan from SBI, Majorda.

The vehicle was registered on February 10, 2023 and delivery was scheduled for the following day.

Fernandes alleged that when he visited the showroom on the same day, “the vehicle was merely shown to me without starting the engine.” On the scheduled date of delivery, he was informed by the sales manager that delivery was being withheld due to an alleged software issue. He claimed that “contradictory and inconsistent reasons were furnished by different officials” of the dealership.

The complainant objected to any invasive work on a brand-new vehicle and sought to be present during the procedure, but was declined citing safety protocol. When he demanded a refund or replacement, the dealer offered only an engine replacement with five years’ free maintenance and an extended warranty as a “goodwill gesture”. After his legal notice seeking a full refund was declined on the same terms, he approached the District Consumer Disputes Redressal Commission, South Goa.

Share this