SC issues notice to govt and car dealers association

A bench justices D K Jain and Madan B Lokur also sought replies of the Automobile Dealers Association on a plea filed by two advocates, who said the additional charges levied by the dealers are in violation of Delhi Motor Vehicle Rule and sought apex court's direction to the government to stop the dealers from doing so.

Advocate Joseph Aristotle, appearing for the petitioner, alleged that the charges collected by dealers under the guise of handling/logistic/loading/unloading/service charges etc during the sale of new automobiles to consumers is illegal.

"Over a period of time, such car dealers having registration powers, illegally and unscrupulously started levying and collecting service charges, logistic charges/ loading and unloading charges/ stocking charges etc from their customers," the petitioners said.

 

The petitioner C Rajaram and Ravinder Singh Dakha moved apex court after the Delhi High Court refused to restrain dealers from collecting such charges from the consumers.

"High Court failed to appreciate that ex-showroom price is a price which includes all expenses incurred by the dealer outlet including the profit margin and there was no need or occasion for the dealer to charge more than the ex-showroom price," the petition said.