Consumer body orders dealer to register EV bike or return Rs 1.59 lakh

A Himachal Pradesh consumer commission has ordered a dealer to either complete the registration of an electric motorcycle bought for Rs 1.60 lakh in 2025 or refund Rs 1.59 lakh with interest, after finding that the buyer was left riding the vehicle without mandatory registration documents.

The commission also awarded Rs 15,000 compensation and Rs 5,000 litigation costs.

The District Consumer Disputes Redressal Commission, Kangra president Hemanshu Mishra and members Arti Sood and Narayan Thakur, were hearing a complaint filed by Kangra resident, one Nikhil, against M/s Saini Auto Mart and Pratishtha Automobiles Comp Limited, alleging deficiency in service after the dealer failed to provide registration-related documents and refused to service the vehicle.

“By failing to fulfil their explicit assurance to process the registration and subsequently withholding the registration certificate (RC) and high-security registration plates (HSRP), the OPs have committed a gross deficiency in service and indulged in unfair trade practices. Furthermore, the willful refusal by the OPs to perform routine maintenance servicing on a newly sold vehicle compounds this deficiency,” the commission said on June 1.

The commission also noted that the refusal to provide routine maintenance service on a newly sold vehicle further aggravated the deficiency in service. (Image generated using AI)

Forcing to ply vehicle without valid registration offence

Despite collecting these regulatory fees, the OPs handed over the physical possession of the vehicle without completing the fundamental registration process.

This act of the OPs constitutes a direct and egregious violation of the statutory mandate enshrined under Section 39 of the Motor Vehicles Act, 1988.

Delivering an unregistered vehicle and forcing the consumer to ply it on public roads without a valid registration not only constitutes an offence under the law but also exposes the consumer to grave criminal liability, compounding law enforcement penalties, and the absolute forfeiture of insurance coverage.

Such willful omission on the part of the OPs ex facie amounts to a severe deficiency in service and an unfair trade practice, causing unwarranted legal risks and mental agony to the consumer.

Motorcycle delivered, documents missing

According to the complaint, Nikhil purchased a blue-coloured Kratos R electric motorcycle on May 5, 2025, for Rs 1,60,000. At the time of sale, the dealer allegedly assured him that the registration process with the regional licensing authority (RLA) would be completed and all necessary documents would be handed over without difficulty.

However, despite paying the full amount and taking delivery of the vehicle, he did not receive the registration certificate (RC), permanent registration number plates or other statutory documents. The complainant claimed he repeatedly approached the dealer but failed to get the paperwork completed.

The complaint further stated that he had already driven the motorcycle for around 5,984 kilometres for daily use without a valid registration certificate because the registration process remained incomplete.

Story continues below this ad

He also alleged that the dealer refused to carry out periodic servicing of the vehicle.

Dealer stayed away from proceedings

The commission noted that notices were duly served on both opposite parties, but neither appeared before the forum. Consequently, the case proceeded ex parte.

The complainant supported his allegations through an affidavit and documentary evidence. Since the opposite parties failed to contest the proceedings, the evidence remained unrebutted and unchallenged.

“There is no plausible reason to disbelieve the cogent and convincing evidence on record,” the commission said while accepting the complainant’s version.

Story continues below this ad

Registration charges collected, registration not done

The commission found that apart from the purchase price, the complainant had also paid Rs 1,300 towards RTO registration and smart card charges.

Despite collecting these charges, the dealer delivered the motorcycle without completing the registration process. Documentary evidence produced before the commission established that the registration-related fees had been received by the opposite parties.

The bench held that failing to process the registration and withholding the RC and high-security registration plates (HSRP) amounted to a gross deficiency in service and an unfair trade practice.

Consumer exposed to legal risks

The commission said the conduct of the dealer violated Section 39 of the Motor Vehicles Act, 1988.

Story continues below this ad

It observed that delivering an unregistered vehicle and allowing it to be used on public roads could expose the consumer to criminal liability, law enforcement penalties and even the forfeiture of insurance coverage. Such omissions, the forum said, caused unwarranted legal risks and mental harassment to the buyer.

The commission also noted that the refusal to provide routine maintenance service on a newly sold vehicle further aggravated the deficiency in service.

Forum orders registration or refund

Allowing the complaint on June 1, the commission directed the opposite parties to jointly and severally complete all registration formalities and hand over the registration certificate, high-security number plates and other documents within 30 days of receiving the order.

If they fail to comply, they must refund Rs 1,59,200 to the complainant along with interest at 9 per cent per annum from the date of filing of the complaint until payment. After the refund is made, the dealer will be entitled to take back possession of the motorcycle in its existing condition.

Story continues below this ad

The commission also awarded Rs 15,000 as compensation for mental agony and harassment and Rs 5,000 towards litigation costs.

Consumer takeaway

The order serves as a reminder that vehicle dealers cannot collect registration charges and then leave buyers without mandatory documents.

The ruling reinforces that consumers can seek relief before consumer forums when dealers fail to complete statutory registration formalities, especially when such failures expose vehicle owners to penalties, insurance complications and legal consequences.