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Tata Motors Fined by Dispute Redressal Forum

Tata Motors Limited is one of the largest manufacturer in Indian automotive industry. The leader in commercial vehicles, and among the top in passenger vehicles has however landed itself in trouble following the filing of a lawsuit by a consumer against it. Tata Nano is one of the best small and fuel-efficient cars in India. Upon examination, it exposed several shortcomings of quality checks.

Tata Motors Fined by Dispute Redressal Forum

The buyer sought consumer forum’s intervention in the case, which echoed consumer’s sentiments and directed Tata Motors to pay Rs 1.25 lakh as compensation as the car developed numerous defects within the first year of its purchase.

The New Delhi District Consumer Disputes Redressal Forum observed that the complainant could not derive any pleasure or satisfaction after purchasing the new car.

“The change of engine and so many parts in a new car is never expected. The complainant has failed to derive any pleasure and satisfaction after purchasing a new car, due to numerous imperfections in the car due to shortcoming of quality checks by opposite party (Tata Motors). Holding opposite party guilty of gross deficiency, we award a total compensation of Rs 1 lakh to complainant,” a bench presided by C K Chaturvedi said.

The Dispute Redressal forums have been established along the Consumer Protection Act, 1986 guidelines. The act lays down the rights of the consumers and provides protection of their rights. The Act enables ordinary consumers secure less expensive and speedy redressal of their grievances. It also mandates establishment of Consumer Protection Councils at the Centre as well as in each State and District, with a view to promoting consumer awareness.

The Central Council is headed by Minster, In-charge of the Department of Consumer Affairs in the Central Government and the State Councils by the Minister In-charge of the Consumer Affairs in the State Governments. It also provides for a 3-tier structure of the National and State Commissions and District Forums for speedy resolution of consumer disputes.