Govt can take action against car dealers, says HC

 The Delhi High Court on Friday made it clear that if the state government gets any complaint against vehicle dealers charging extra from buyers during registration of vehicles, it can take action.

A division bench of Acting Chief Justice A K Sikri and Justice Rajiv Sahai Endlaw, while disposing off a petition seeking a curb on illegal charges levied by car dealers, said that if the transport department and the government get any complaint, they must take action against the accused immediately.

“We accordingly dispose off this writ petition with the direction that in the event of the transport department or the state of Delhi receiving any complaint... they shall enquire into the complaint,” the bench observed.

“If they find merit therein, they shall take action in accordance with law against such vehicle dealers,” the bench said.

The court’s order came on a plea seeking a curb on illegal charges, including logistic charges, loading and unloading charges, levied by car dealers across the city.

The plea filed by C Rajaram sought a direction to 69 car dealers in the city to refund money illegally collected from vehicle buyers. The bench also observed that the government has no authority to intervene in the matter between dealers and buyers even if the extra charges are illegal in certain situations, such as if the buyer had already agreed to pay extra chrages for add-on services.

“The government has no authority to intervene as long as charges are not on account of commission or for providing registration service,” the court said.

“If vehicle dealers are providing any add-ons in terms of services, goods and fuel and buyers agree to pay, in the absence of any law to control the same, this court cannot issue any direction on this,” the court said. The petition had stated that car dealers having registration powers, unscrupulously started levying and collecting service charges, logistic charges and stocking charges from customers.

Such illegal charges vary between Rs 3,500 and Rs 25,000 per vehicle, depending on the manufacturer and the cost of the vehicle. The petition also said at least Rs 550 crore has been collected by car dealers using this “trick” since 1999.