‘Delhi government can take action against car dealers'

New Delhi -  The Delhi High Court Friday made it clear that if the government of Delhi receives any complaint against vehicle dealers charging anything extra from the buyers for providing  the services of registration, it can take action.

A division bench of Acting Chief Justice A.K. Sikri and Justice Rajiv Sahai Endlaw dispossing off a petition seeking a curb on the illegal charges levied by car dealers on buyers said that if  the city's transport department and government received any complaint from the buyers, they shall take action in accordance with law against such vehicle dealers.

“We accordingly dispose of this writ petition with the direction that in the event of the respondents No.1 and 2 Transport Department/State of Delhi receiving any complaint of any vehicle dealer charging anything extra/commission from the vehicle purchaser for providing the services of registration, the respondents No.1 and 2 shall enquire into the said complaint and if find

any merit therein, 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 the illegal charges, including logistic charges, loading and unloading charges, levied by car dealers on buyers.

The plea filed by C. Rajaram sought a direction to 69 car dealers in the city to refund the money illegally collected from vehicle buyers in the name of logistics, stocking, loading and  unloading charges.

The bench also observred that the government has no authority to intervene in the matter between dealers and buyers even if the extra charges are illegal.

“The respondents No.1 and 2 (transport department and government) have no authority to intervene in the charge by the dealers even if illegal of the said extras so long as they are not on  account of commission or for providing service of registration,” the court said.

“If the vehicle dealers are providing any extras in terms of services, goods, fuel etc. to the purchasers and the purchasers agree to pay therefore, in the absence of any law to control the  same, this court cannot issue any direction with respect thereto.”

The petition had said that car dealers having registration powers, unscrupulously started levying and collecting service charges, logistic charges/loading and unloading charges, stocking  charges etc from their customers or intending buyers.

"Such illegal charges" vary between Rs.3,500 and Rs.25,000 per vehicle depending on the manufacturer and the cost of the vehicle and a sum of more than Rs.550 crore has been collected  by the car dealers since 1999, the petition further added.