Delhi Consumer Court To JSW MG Motor: Refund Customer Rs 18 Lakh For Defective Astor, Pay Rs 4 Lakh Compensation

In a significant ruling, a Delhi consumer court has directed MG Motor India to refund the full cost of an MG Astor to its owner. This would amount to Rs 18 lakh. Additionally, the company has also been asked to pay a compensation of Rs 4 lakh to the buyer. This amount will also include litigation expenses.

The complaint was filed by a Delhi resident who purchased an MG Astor in October 2022. He paid Rs 18,23,228 for the vehicle. Within the first few months of ownership, the owner started facing issues with the vehicle.

The complaint mentions that the Tyre Pressure Monitoring System (TPMS) started malfunctioning. The Electronic Steering Column Lock (ESCL) also started having issues. The car was still, under warranty. Despite this, the customer alleged that he was charged Rs 3000 for replacing the TPMS unit.

The situation worsened in June 2023 during a trip to Gangotri Dham in Uttarakhand. The vehicle threw an ESCL error warning while the vehicle was still in motion. The customer contacted MG’s customer support. He tried to drive the car to the MG service centre in Dehradun, following instructions from the support staff.

During this journey, the vehicle’s steering allegedly got jammed. This, the complaint mentions, led to an accident. It also mentions that MG’s response was delayed and a technician showed up only after 10 hours. The customer also alleged that the company failed to conduct a proper technical inspection to identify the root cause of the problem

Responding to the complaint, JSW MG Motor India initially denied prior knowledge of the steering issue. It maintained that the customer had not allowed a comprehensive inspection of the vehicle. It also rejected claims of any manufacturing defect with the vehicle in question.

The dealer involved in the case, MG Motor Gitansh Motors, stated that any manufacturing defect falls under the responsibility of the manufacturer and not the dealership. The dealership, in a way, distanced itself from the issue.

The consumer commission, led by President Divya Jyoti Jaipuriar and Member Ashwani Kumar Mehta, studied the case. The bench was not convinced by the arguments presented by the carmaker. It also noted that email records from MG’s Dehradun workshop only sought approval to initiate an insurance claim for repairs. There was no evidence of a detailed inspection being carried out on the vehicle.

This contradicts the carmaker’s claims. The commission further stated that the mechanical and electronic failures (such as those related to TPMS or ESCL) cannot be attributed to the driver’s handling of the SUV.

In this case, the court held MG Motor India accountable and ruled that it failed to address the vehicle’s defects. It did not honour the car’s warranty and roadside assistance commitments. The bench also concluded that the SUV in this case, suffered from manufacturing defects.

Taking these into account, the court asked MG to issue a refund of Rs 18,23,228 to the customer, along with 7% annual interest calculated from the date when the complaint was filed. Additionally, a sum of Rs 4 lakh will need to be paid towards compensation and legal expenses. If the payment is not made in four weeks, the interest on the total amount will increase to 9%.

The vehicle in this case, has remained at MG’s Dehradun workshop for nearly three years. The repair work hasn’t been completed yet. The court observed that repairing and returning the Astor is no longer a solution. The carmaker may dispose it off as deemed appropriate, after issuing a complete refund. The owner has also been directed to assist in cancelling or transferring the ownership. The ruling, however, did not hold the dealer liable.

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