Raipur consumer panel orders new car or full refund over E20 engine damage in landmark ruling

RAIPUR: Amid ongoing concerns over the use of E20 petrol, the Raipur District Consumer Disputes Redressal Commission has directed a car manufacturer to replace a complainant's vehicle with a brand-new one after it suffered severe engine damage allegedly due to the use of E20 fuel. In what is being seen as a significant consumer rights ruling, the Commission held both the vehicle manufacturer and the dealer liable for deficiency in service, observing that the vehicle's engine was not compatible with E20 petrol.

According to the order, if the manufacturer fails to provide a new replacement vehicle, it must refund the full purchase price of the car amounting to Rs 20.50 lakh.

The Commission also directed the opposite parties to jointly pay Rs 1 lakh as compensation for mental harassment and Rs 10,000 towards litigation expenses, taking the total monetary liability to approximately Rs 21.60 lakh. The commission has mandated compliance with the order within 45 days, failing which an annual interest rate of 7 per cent will be levied on the delayed amount. This historic decision is expected to serve as a major national precedent for consumer rights across India as the country transitions to ethanol-blended fuels. (ANI)

Also Read: Ethanol blending began under UPA; E20 transition after years of testing: Centre