
one of my Client recent had case which i am explaining below and If you are stuck in such similar situation, here is what to do.
Mr. Raghav Menon walked into “Apex Wheels” in Lakshminagar on 15 April 2024 to buy a brand-new hatchback. The sparkling vehicle on the floor looked untouched, the odometer read just ten kilometres, and the sales executive insisted it had never been used. A week after taking delivery, Raghav noticed faint swirl marks on the paint and slight scuffs on interior plastics—signs consistent with a long stint as a display model rather than a factory-fresh unit.
When he confronted the dealership, the manager casually admitted that cars are often rotated from the yard into the showroom for “a few months.” They felt no duty to disclose this because the cars are not registered or driven on public roads. Feeling deceived, Raghav decided to explore his legal options.
Advice in such cases
- Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think
- Gather all paperwork—invoice, booking form, delivery checklist, and any email or WhatsApp conversations with the dealer.
- Document the physical condition of the car through high-resolution photographs and a certified mechanic’s inspection report.
- Send a legal notice to the dealership requesting replacement or refund within a specified period (usually 15 days).
- If unresolved, file a complaint before the appropriate Consumer Disputes Redressal Commission (District or State, based on invoice value).
- Consider filing an FIR for cheating under Section 322 of the Bharatiya Nyaya Sanhita, 2023 (BNS) if deliberate concealment and misrepresentation are evident.
Applicable Sections of Law
- Consumer Protection Act, 2019 – Sections 2(6) (deficiency in service) and 2(28) (unfair trade practice).
- Bharatiya Nyaya Sanhita, 2023 – Section 322 (Cheating) and Section 334 (Criminal breach of trust).
- Central Motor Vehicles Rules, 1989 – Rule 47A (disclosure requirements at sale, as interpreted by recent High Court rulings).
- Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS) – procedural provisions for lodging information to police and securing investigation.
If you are the complainant
- Maintain a chronology of events with dates, names of dealership staff, and conversations.
- Use Registered Post A/D or e-mail with digital signature when issuing notices to create admissible evidence.
- Preserve the car’s present condition; avoid repairs that could erase proof of prior use.
- Stay polite but firm in all follow-ups—you may later annex call recordings (taken with consent) as supporting material.

If you are the victim
- Do not panic about warranty—manufacturers generally honour service, but insist on a written clarification from the company’s regional office.
- Keep track of any additional expenses (e.g., professional detailing, expert inspection) to claim compensation later.
- If the dealership offers a conciliatory free service or accessory, accept only after a clear written admission of fault.
- Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think
How the police behave in such cases
Police stations often categorise showroom-fraud matters as “civil disputes.” You may need to quote Section 175 of BNSS, which empowers police to register information when a cognisable offence such as cheating under BNS is alleged. Escalate to the Sub-Divisional Police Officer if the Station House Officer declines to register an FIR.
FAQs people normally have
- “Will my warranty be void?” – No, manufacturer’s warranty runs from the date of sale but insist on getting the correct start date on the service booklet.
- “Is a display car considered second-hand?” – Legally, no, unless it had a prior registered owner, but undisclosed prolonged display constitutes an unfair trade practice.
- “Can the dealer deduct depreciation if I return the car?” – Not when misrepresentation is proved; you are entitled to a full refund with possible compensation for mental agony.

What evidence is required?
- Stamped purchase invoice and insurance proposal form.
- Pre-delivery inspection checklist signed by dealership staff.
- Expert evaluation report indicating cosmetic or mechanical wear.
- Any promotional brochures or verbal assurances recorded during sales pitch.
- Copy of legal notice and postal acknowledgement.
How long will the investigation take?
Consumer Commission matters typically conclude in 6–12 months at the District level, provided documentation is robust and the dealership does not seek repeated adjournments. Criminal investigation under BNSS can take 3–6 months; a charge-sheet must ordinarily be filed within 90 days for offences punishable up to seven years, extendable with judicial permission.
Advocate Sudhir Rao, Supreme Court of India
