South Delhi District Commission Holds CarDekho.com Liable For Not Refunding Booking Amount, Directs To Pay Rs 20k Compensation

Brief Facts:

Mr Rajesh Sharma (“Complainant”) booked a used car through the online portal of CarDekho.com. The selected model was a Swift Dezire VDI-2017, and the total cost displayed for this used car amounted to INR 41,576/-. Following an online payment of a booking amount totalling INR 999/-, the Complainant received a confirmation message on his mobile phone, asking him to complete the Know Your Customer (KYC) process. In compliance, the Complainant submitted all required documents. Upon the fulfilment of these formalities by the Complainant, the company declined to deliver the purchased car, citing an increase in the price. The Complainant, despite multiple attempts to address the issue through correspondence with CarDekho's Customer Care, didn't receive a satisfactory reply. Notably, CarDekho not only removed the specified car from its portal but also eliminated the corresponding order from the Complainant's account. Feeling aggrieved, the Complainant filed a consumer complaint in the District Consumer Disputes Redressal Commission-II, New Delhi (“District Commission”).

CarDekho argued that buyers, by engaging with the website, implicitly agree to the user agreement's T&C. It contended that the Complainant's expectations were based on the website's classified listings, and the alleged refusal to deliver the car was a result of misunderstanding rather than any deceptive practices.

Observations by the Commission:

The District Commission referred to Clause 24.2 of the website's T&C, which stipulated CarDekho's role only as a facilitator. The District Commission agreed with the contention raised by CarDekho that it acted as a facilitator but it rejected the argument that prospective buyers visiting the website for product purchases do so entirely at their discretion, risk, and responsibility.

The District Commission noted that the Complainant made a payment of Rs. 999/- for the booking amount. Further, the WhatsApp messages revealed that the Complainant was instructed to upload KYC documents on a specific link provided by CarDekho. Therefore, the District Commission held that it cannot evade responsibility toward customers engaging in transactions on its website.

Consequently, the District Commission held CarDekho liable for deficiency in service and negligence. Further, the District Commission directed it to pay Rs. 20,000/- to the Complainant as compensation and litigation costs incurred by him.

Case Title: Rajesh Sharma vs CarDekho.com

Case No.: CC/267/2021

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