Consumer Issues
BMW dealer asked to refund incidental charges

A dealer of BMW from Ernakulam was asked to refund Rs28,000 collected as handling charges and also pay Rs10,000 for causing mental agony to the customer


The Ernakulam Consumer Dispute Redressal Forum has asked Platino Classic Motors India Pvt Ltd, authorised dealer of BMW to refund Rs28,000 collected as incidental charges for transporting vehicles from the manufacturer’s yard to the showroom.


According to a report from New Indian Express, one Thomas Varghese Oommen of Pathanamthitta had filed complaint against the car dealer for charging Rs28,000 from his as handling expenses for buying a BMW 520D for Rs38.83 lakh.


During the hearing, Platino Classic Motors argued that Oommen had agreed to pay incidental charges. However, the Forum asked the dealer, if it is legally entitled to collect handling charges from customers in addition the price and other statutory charges paid by the customer.


“The opposite parties miserably failed to explain how the handling charges were legally valid. The dealer has made the charges look like government levy. If it is not under the the Motor Vehicles Act-1988, how can the dealer collect the additional charges, when they are not entitled to do so,” the Forum said.


Apart from refunding Rs28,000, the dealer will also have to pay an additional amount of Rs10,000 towards the mental agony the complainant had to go through and also towards covering the cost of the proceedings. The verdict was pronounced by Consumer Forum president A Rajesh, Sheen Jose and VK Beenakumari, the report says.



Mahesh Bhat

2 years ago

This money is collected to pay bribe to RTO for faster and smooth registration. All the dealers have some understanding with RTO officials.


2 years ago

"You have made these charges look like a government levy when it is not. How can you charge them when you have not been authorised? Where are the rules in the Motor Vehicles Act that authorise you? It is sort of game that you are playing with the customers. It seems your manufacturers have told the commission they are expected to pay to you, you can pass them on (to) buyers," This is what a Bench headed by Justice D K Jain told Automobile Dealers Association two years ago.




In Reply to MOHAN 2 years ago

Handling charges adding to car prices

Auto dealers levy illegal 'handling charge' as RTO sleeps

Government to car dealers: Waive handling charges

I-T Dept sets up 24x7 monitoring cell in Mumbai for election

The 24x7 monitoring cell will help to check use of black money during Assembly elections. In addition, the Income Tax department has advised people to carry ID or PAN card, while carrying large amounts of cash or bullion


The Income Tax (I-T) Department in Mumbai has set up a round-the-clock control room and complaint monitoring cell to check use of black money during forthcoming assembly elections.


Following instructions from the Election Commission, the I-T Department has floated a helpline number for general public to alert it about any suspicious movement of large sums of cash or bullion in Mumbai. The telephone numbers of the Control Room are 022-22635511, 022-22627275 and 1800-022-0115 (Toll Free).


In cases, where I-T authorities receive any information about movement of large amount of cash or bullion, they would investigate the cases and shall seize the cash or bullion if no satisfactory explanation is furnished.


The IT Department has advised the public to carry necessary documentary evidence, including Identity Card and PAN card, while carrying large amounts of cash or bullion in order to avoid unnecessary inconvenience.


Gautam Khaitan arrested in VVIP chopper scam

Khaitan is the first to be arrested by the ED in the Rs3,600-crore AgustaWestland chopper scam


The Enforcement Directorate (ED) on Tuesday arrested Gautam Khaitan in the Rs3,600-crore AgustaWestland chopper scam.


The agency, which is trying to track the alleged kickbacks of Rs360 crore from the deal, made its first arrest in the case.


On Monday, the ED had searched two properties of Khaitan in the national capital.


"Khaitan has been arrested under the provisions of the Prevention of Money Laundering Act (PMLA). He is required for further detailed interrogation in the case," ED sources said.


The agency, after searches, had seized jewellery worth Rs1 crore and impounded some "important" financial documents from his premises.


This is the first big action by the ED in this case after it registered a criminal FIR in July this year against Khaitan, former IAF chief SP Tyagi and 19 others to probe the alleged kickbacks.


Khaitan was on the board of Chandigarh-based Aeromatrix, which is allegedly a front company for the financial dealings of the chopper deal.


According to CBI and other agencies, they had detected that funds for the particular deal were allegedly routed through this firm and few others.


A reference to Khaitan was also reportedly made in the Italian prosecutor's report filed in a court in Italy.


Khiatan, however, has refuted all the allegations made against him.


He earlier been quizzed by the CBI in this case. The ED had registered a case in this deal under PMLA, taking cognisance of a more-than-a-year-old CBI FIR.


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