A Cuffe Parade resident, who questioned a car dealer's attempt to charge an additional registration amount for a BMW model that he had purchased, has secured a landmark ruling in favour of new car buyers
A Cuffe Parade resident, who questioned a car dealer's attempt to charge an additional registration amount for a BMW model that he had purchased, has secured a landmark ruling in favour of new car buyers. After the businessman tweeted about his case, transport commissioner Praveen Gedam has announced the cancellation of licences of car dealerships that overcharge buyers in the name of registration or logistics fee.
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The Worli-based car dealer had initially charged an additional Rs 90,000 as 'logistics' fee for the BMW 5 Series that Sameer Javeri bought in August
The incident took place in August, when Sameer Javeri, 36, purchased a new BMW 5 Series for his aunt. Although Javeri was paying the ex-showroom price of Rs 53.6 lakh for the car, he noticed that the registration amount -- supposed to be R8.04 lakh -- charged by Infinity Cars, Worli, had an added amount of Rs 90,000.
Speaking with mid-day, Javeri said, "I booked the car on August 1 and made a down payment of Rs 3 lakh." He added, "I wanted the car to be delivered by August 14 on the occasion of my aunt's birthday, as it was a gift to her."
But, even after the loan amount was dispersed, the car was held back as Javeri refused to pay the extra Rs 90,000, which the company defined as "logistics" charges. "I told them that they were not supposed to be charging me for this in the first place," Javeri said.
The row led to a stalemate with the car dealership refusing to deliver the car.
Adamant about not paying the additional fee, on August 22, Javeri decided to write to Purushottam Nikam, deputy transport commissioner and Govind Saindane, head RTO of Tardeo area, on the issue.
"The vehicle I have paid for in full, for all statutory charges, registration, and insurance. I have even already received the insurance policy (attached) and taken a special number for my car, but the dealer is withholding the delivery illegally. Also, the dealer has not completed registration formalities despite having paid registration fee," the letter reads. The RTO immediately stepped in and even paid a visit to the dealership.
Meanwhile, Infinity Cars got in touch with Javeri, and a consensus was reached. They delivered the car on August 24, without Javeri having to pay an extra amount. Javeri also withdrew his initial complaint.
But, last month, Javeri decided to bring the issue to the notice of transport commissioner Praveen Gedam. He tweeted to Gedam enquiring if the RTO had found a solution against car dealerships fleecing buyers. Gedam immediately tweeted back, saying that he had issued an order prescribing the punishment for such offences.
Gedam said that car dealerships overcharging their customers with 'additional RTO' charges would have their licences cancelled. "If they (dealerships) charge additional RTO fees, the fine for their first offence will be a one-month suspension of their trade licence, two months for their second offence, and three months for their third. After that, if they continue the offence, their licence will be cancelled."
Hemal Kapadia, Infinity Cars GM, refused to divulge why the extra amount was charged as registration fee.
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