Fault not rectified, consumer panel tells BMW India to refund Rs 1.32 cr

The State Consumer Disputes Redressal Commission, Chandigarh, has directed BMW India Private Ltd, Gurugram, to refund over Rs 1.32 crore, the cost of a BMW car, along with interest at the rate of 12% per annum, for failing to rectify a fault in the new vehicle.

In a complaint filed before the commission, a representative of M/s Ambika Realcon Developers Private Ltd, Chandigarh, stated that the company had purchased a luxury SUV for nearly Rs 1.5 crore for the personal use of its director, from a dealer in the Industrial Area, Phase I, Chandigarh. The car was delivered on April 26 last year.

However, the director was shocked to learn of an underlying electrical issue, initially attributed to a faulty battery, but later diagnosed as a malfunctioning DME (digital motor electronics), a core component responsible for the entire engine and electronic system.

The opposite parties admitted to the defect and stated that the part was unavailable in India ‘and would be imported from Germany, but failed to provide a concrete timeline. Throughout this period, the complainant received repeated apologies and vague assurances from BMW representatives through a series of emails.

Due to the delay, an old and inferior model was provided temporarily, despite repeated requests for a matching vehicle. After prolonged follow-ups and no resolution despite promises, he served a legal notice on July 29, demanding replacement of the defective car or refund of the entire amount with interest, reimbursement of EMI interest, costs of accessories and coating, and compensation for the mental harassment and loss of reputation he suffered.

Despite the notice, the opposite parties neither responded nor took any substantive action.

Finally, the vehicle was returned after 43 days. Within a week, the vehicle again began exhibiting “power problems”, clearly indicating that the root cause had not been removed.

The opposite parties (BMW India) denied the allegations.

After hearing the arguments, the commission directed BMW India Private Ltd, Gurugram, to refund over Rs 1.32 crore, along with interest at the rate of 12% per annum, from April 26, 2024, onwards within a period of 30 days from the date of the receipt of a certified copy of the order, failing which they shall be liable to pay penal interest at the rate of 13% per annum on the amount.