Police Seize Car Forged Documents Buyer Rs 4 25 Lakh Payout

A consumer commission in West Bengal has directed a car dealer and a vehicle owner to refund Rs 2.45 lakh and pay an additional Rs 1.8 lakh towards expenses, compensation and litigation costs after a second-hand SUV sold to a customer was seized by police on the ground that its documents were forged.

President Duri Venkat Srinivas and members Moumita Chakraborty and Ranesh Ranjit Mondal found that the dealer and vehicle owner concealed vital facts about the car and the suppression of information led to the vehicle’s seizure.

“The said opposite parties No 1 and 2 (car dealer and owner) are jointly or severally directed to refund 2,45,000 to the complainant along with Simple Interest @9% from the date of receipt till the date of realization. The opposite parties No 1 and 2 are further directed to jointly or severally pay 70,000 to the complainant which he incurred towards insurance, pollution clearance, servicing and decoration of the said car,” the order read.

They were also directed to jointly or severally pay 1,00,000 as compensation for harassment and mental agony suffered by the complainant and Rs 10,000 towards litigation costs to the complainant.

The complainant stated that after purchasing the vehicle, he spent around Rs 70,000 on insurance, pollution clearance, servicing and decor. It was stated that on July 18, 2021, two police officers visited his residence and seized the vehicle after informing him that the documents produced in support of ownership were forged. He alleged that despite repeated attempts to contact the seller after the seizure, they stopped responding. Alleging cheating and unfair trade practice, the complainant moved the consumer commission.

The dealer and owner failed to contest the proceedings before the commission and the matter proceeded without hearing their side.

The commission found that the complainant was an innocent purchaser (bona fide buyer) who was unaware of the alleged fraud at the time of purchase. It observed that the vehicle was sold by hiding key facts. It held that selling a vehicle with false or forged documents amounted to both an unfair trade practice and deficiency in service under the Consumer Protection Act.

“The Opposite Parties have concealed vital facts about the said car and the said suppression led to the seizure of the said car as detailed above. The OPs have chosen not to appear and defend despite service hence the allegation of the complainant remain un-rebutted and it is also considered as deemed acceptance of the allegation,” the order read.

The commission directed the car dealer and owner to jointly and severally refund the purchase price of Rs 2.45 lakh, reimburse Rs 70,000 spent on insurance, pollution clearance, servicing and decoration, pay Rs 1 lakh as compensation for harassment and mental agony, and Rs 10,000 towards litigation costs. The commission also directed them to discontinue such unfair trade practices.

Buyers of used vehicles can seek consumer remedies if a dealer sells a vehicle with forged or defective ownership documents. Traders may be held liable not only to refund the sale price but also to compensate consumers for consequential expenses and mental agony arising from the fraudulent sale.

Consumers facing similar grievances may contact the consumer helpline in their respective states (West Bengal: 033–2252–0448) or dial the National Consumer Helpline at 1915 for assistance.

Kerala man wins Rs 1.36 lakh payout after missing connecting flight to Riyadh

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

New house left ‘incomplete and leaking’, man wins Rs 40,000 from contractor

Ashish Shaji is a Senior Sub-Editor at The Indian Express (Digital), where he specialises in legal journalism. Combining a formal education in law with years of editorial experience, Ashish covers court developments and key cases for the audience. Expertise Ashish is a law graduate (BA LLB) from IME Law College, CCSU. His work at The Indian Express focuses on translating the often-dense proceedings of courts into clear, legal content. He also runs liveblogs from the Supreme Court and various High Courts. Industry Experience: With over 5 years in the field, Ashish has contributed to several niche legal and professional platforms, honing his ability to communicate complex information. His previous experience includes: Lawsikho: Gaining insights into legal education and practical law. Verdictum: Focusing on high-quality legal news and court updates. Enterslice: Working at the intersection of legal, financial, and advisory services. ... Read More