Case against car dealers for levying ‘illegal' charges

Press Trust of India Updated - February 06, 2012 at 08:54 PM.

A court here has directed Delhi police to lodge an FIR on a complaint against a top executive of Germany-based Volkswagen, directors of its authorised car dealer and a official of transport department over illegal charges levied on buyers.

The Metropolitan Magistrate, Mr Rajinder Singh, passed the orders for lodging FIR on a plea alleging that car dealers were levying charges such as ‘handling expenses' in violation of law.

The complainant said that Central Motor Vehicle Rules and an August 2007 notification of Delhi Transport Department prohibit motor vehicle dealers from levying such charges.

“Looking at the scale and gravity of the allegation, it is deemed fit to direct the SHO concerned to register an FIR and investigate this matter. Accordingly, the SHO concerned is directed to register an FIR in accordance with law under the relevant sections,” the judge said.

The complaint filed by advocate Rajiv Ranjan Raj alleged levying of illegal charges by car dealers and sought lodging of FIR for cheating, criminal conspiracy, criminal breach of trust and for offences under Prevention of Corruption Act.

He made car dealer Bhasin Motors, its four directors, MD of Volkswagen India Pvt Ltd and a Motor Licensing Officer of Delhi Transport Department parties in the case.

Mr Raj said the Delhi government's August 13, 2007 notification prohibited car dealers from charging anything in the name of service/miscellaneous charges from the purchasers.

He said Bhasin Motors charged him Rs 3,911 as handling and number plate charges apart from VAT March last year.

The dealer and officials of transport department are involved in a “mass-scale fraud being played upon innocent purchasers by such unscrupulous dealers,” Mr Raj told the court.

He added that “the car manufacturer is also aware of the fact that their authorised dealers are charging handling charges/ loading and unloading charges/ logistic charges etc from customers.”

The Delhi High Court had also on January 4 asked the car dealers' association to file its reply on a PIL on the same issue.

The PIL had alleged that car dealers are levying several illegal charges and sought a CBI inquiry into the nexus between officials and car dealers.

Published on February 6, 2012 15:19