Tag: National Consumer Disputes Redressal Commission

NCDRC upholds order for Mahindra & Mahindra to replace defective XUV500 or issue full refund

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The National Consumer Disputes Redressal Commission (NCDRC) upheld an order directing Mahindra & Mahindra to either replace a defective XUV500 car or refund ₹13,20,000 to the purchaser.

Presiding Member Air Vice-Marshal (Retd.) J Rajendra affirmed the orders of the District and State Commissions, stating they were well-reasoned.

The decision stemmed from consistent documented faults reported during servicing and repairs, along with an expert report highlighting serious problems, establishing a ‘manufacturing defect’ in the vehicle.

“This was primarily because of consistent and repeated documented faults as part of servicing and repairing itself as well as the expert report of Shri Prashant Kumar, Proprietor, Tire Wheel Experts and Software Engineer dated 10.07.2016 indicating serious problems. This established ‘manufacturing defect’ in the vehicle,” the order dated April 5 stated.

The case, heard on appeal by Mahindra against the State Consumer Disputes Redressal Commission’s order, involved issues with ignition, braking, lights, and auto central lock surfacing shortly after purchase. Despite repair attempts, problems persisted, allegedly leading to an accident.

According to the complainant, issues with ignition, braking, lights, and auto central lock began to surface shortly after he purchased the car. Despite numerous attempts at repair, these problems persisted and allegedly led to an accident, causing further damage.

Subsequent repair efforts also failed to fix the car’s issues, the complainant asserted. When he sought a replacement, both Mahindra and the car dealer failed to respond, even after receiving a legal notice. Consequently, the complainant filed a complaint before the District Forum.

Mahindra argued the car’s extensive mileage contradicted claims of defects, but the Commission found the complainant’s evidence compelling. If the car was defective, it would not have run 1.19 lakh kilometers (km) within six years of purchase, Mahindra said.

Mahindra further argued that the expert report that indicated serious problems was based only a visual inspection, without employing any testing equipment or facilities and hence was contrary to the prescribed procedure.

With concurrent findings of fact from lower commissions, the NCDRC dismissed the appeal, asserting limited scope for revision under the Consumer Protection Act.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Maggie Noodles Case: Consumer redressal body rejects old govt complaint

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Nestle India Ltd announced in a stock exchange filing on Thursday, April 4, that the National Consumer Dispute Redressal Commission (NCDRC) has ruled in favour of the FMCG major, dismissing the government’s 2015 plea against the sale of Maggi noodles. The government had sought compensation of ₹284.55 crore along with punitive damages of ₹355.41 crore.

“Complaint filed by the Union of India, Department of Consumer Affairs in 2015 before the NCDRC on the allegation that by selling Maggi noodles in the past, the company had indulged in unfair trade practice by manufacturing and selling of hazardous and defective goods to the public and thereby seeking compensation of ₹284.55 crore and punitive damages of ₹355.41 crore, was dismissed by NCDRC in favour of the company vide NCDRC’s Order dated April 2, 2024. Copy of the said order was received by the Company on April 3,” the company informed exchanges.

The controversy surrounding Maggi erupted in June 2015 when the popular instant noodle brand was banned nationwide for six months due to allegations that it contained chemicals beyond permissible limits. This led to the recall and destruction of 38,000 tonnes of Maggi noodles from retail shelves across the country. However, the ban was subsequently relaxed in November 2015.

Earlier, on Wednesday (April 3), domestic research firm Emkay Global initiated coverage on the stock with a ‘reduce’ rating. The brokerage has initiated coverage on the stock with a reduced rating and has a price target of ₹2,650 per share, implying an upside of just 1% from Tuesday’s closing price.

The Nestle India share price settled flat in the red at ₹2,551 on the NSE. The stock has plunged 6.52% so far this year, while it has risen 30% in the last one year.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Reliance Communications, gallery told to pay Rs 35,000 over abrupt disconnection of number

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Thane District Consumer Disputes Redressal Commission has directed Reliance Communications Limited and one of its galleries to pay Rs 35,000 to a consumer for creating hurdles when he tried to port out his mobile number and abruptly disconnecting it.

The Commission passed the order on November 2, but it was made available on Wednesday.

Citing deficiency in service, Commission President V C Premchandani and member Poonam V Maharshi noted in their order that the compensation will include Rs 25,000 towards mental harassment and Rs 10,000 towards the cost of litigation.

The order came on a complaint by Ulhasnagar resident Atal Paramlal Ahirwar who got two postpaid connections from Reliance Communications in 2011. The complainant said he was not happy with the service and ported out the numbers to another telecom provider.

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Ahirwar switched backThe order came on a complaint by Ulhasnagar resident Atal Paramlal Ahirwar who got two postpaid connections from Reliance Communications in 2011. The complainant said he was not happy with the service and ported out the numbers to another telecom provider. to Reliance Communications in July 2016.

The complainant said he was again dissatisfied with their services and wanted to move to a third operator. While he cleared all the bills, he alleged that Reliance Communications showed the amount as outstanding and did not let him port out. They also disconnected one of his numbers, he said in his complaint to the Commission.

While Ahirwar sought compensation of Rs 2 lakh, the Commission asked Reliance Communications and its “gallery” Vaibhav Laxmi Enterprises, Ambernath, to jointly pay Rs 35,000.

The Commission faulted the service provider for disconnecting the complainant’s number and not permitting him to port out. “It means Reliance has made deficiency in service against the complainant,” said the Commission.

It also said that the gallery had failed to take up the customer’s grievance with Reliance Communications. “Therefore, the Gallery has also given deficiency in service to the complainant,” ruled the Commission.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Orris Infrastructure ordered to pay Rs 46-crore fine by NCDRC

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The National Consumer Disputes Redressal Commission (NCDRC) on Monday, August 29,  imposed a Rs 46-crore fine on directors and promoters of realty firm Orris Infrastructure.

However, the apex consumer commission said the company’s directors and promoters are personally liable to refund the money to 29 complainants.

According to the NCDRC order, it asked Orris Infrastructure to refund the entire principal amount deposited by the respective complainants along with compensation as awarded by this commission within three months from today (August 29), failing which proceedings under Section 25 & 27 of the Consumer Protection Act, 1986, will be initiated against them.

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Back in 2020, the commission disposed of the present complaint and directed Orris Infrastructure to refund the entire principal amount received from the complainants along with compensation in the form of simple interest at 8% p.a instead of 12% p.a. due to unavoidable and unforeseen circumstances beyond the control of the Orris Infrastructure on account of pandemic COVID-19 situation, from the respective dates of deposit till the actual date of payment together with costs of Rs 25,000 to each of the complainants.

Relying on previous Supreme Court judgments, NCDRC, said, “It is held that approval of a resolution plan does not ipso facto discharge a personal guarantor (of a corporate debtor) of her or his liabilities under the contract of guarantee.”

“As held by this Court, the release or discharge of a principal borrower from the debt owed by to its creditor, by an involuntary process i.e. by operation of law, or due to liquidation or insolvency proceeding, does not absolve the surety/guarantor of his or her liability, which arises out of an independent contract,” it said.

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The NCDRC is a quasi-judicial commission that was set up in 1988 under the Consumer Protection Act of 1986. The commission is headed by a sitting or retired judge of the Supreme Court of India. The commission is presently headed by Justice R.K. Agrawal, former judge of the Supreme Court.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Sensodyne ads were ‘misleading’ and so GSK will pay a penalty

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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GlaxoSmithKline (GSK) Consumer Healthcare has agreed to pay a penalty of Rs 10 lakh as mandated by India’s Central Consumer Protection Authority (CCPA) against “misleading” advertisements of Sensodyne toothpaste, sources told CNBC-TV18 on Wednesday.

On March 22, the CCPA ordered GSK to discontinue advertisements for Sensodyne which make the claims such as ‘recommended by dentists worldwide’ and ‘world’s No.1 sensitivity toothpaste’ within seven days. CCPA says no cogent study was submitted by GSK to substantiate the claims.

UK-based GlaxoSmithKline’s Indian subsidiary has also withdrawn an appeal filed in the National Consumer Disputes Redressal Commission (NCDRC) against the consumer protection regulator, sources said.

This implies that GSK by agreeing to pay the penalty and withdraw all the advertisements making such claims under Sensodyne product range from television, Facebook, Twitter, YouTube, and other platforms, will have to now rework the entire advertising strategy.

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Confirming the development, CCPA sources close to the development said, “More than the quantum of the penalty, it is important to note that GSK admitted that their ads regarding Sensodyne products were misleading and it sends the right message to the industry regarding the government’s action and awareness against misleading ads and claims.”

In March 2022, CCPA had ordered the discontinuation of certain misleading advertisements of Sensodyne toothpaste and imposed a Rs 10 lakh penalty.

Post the orders of the central consumer protection authority, GSK had challenged and made a plea against the orders at NCDRC and in the first hearing itself, the Disputes Redressal Commission is understood to have dismissed the plea moved by GSK and asked them to withdraw the plea and pay up the penalty, sources said.

On February 9, 2022, the CCPA passed an order directing the discontinuation of the advertisement of Sensodyne products, which show endorsement by foreign dentists. The CCPA had initiated suo-moto action against the advertisement of Sensodyne products on various platforms, including television, Youtube, Facebook, and Twitter.

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The ads show dentists practising outside India endorsing the use of Sensodyne products, namely Sensodyne Rapid Relief and Sensodyne Fresh Gel for protection against teeth sensitivity. These advertisements claimed Sensodyne is ‘recommended by dentists worldwide,’ is ‘world’s No. 1 sensitivity toothpaste,’ promises ‘clinically proven relief, and works in 60 seconds.’

“After examination of the response submitted by the company, CCPA observed that the two market surveys submitted by the company in support of its claims ‘recommended by dentists worldwide’ and ‘world’s No.1 sensitivity toothpaste’ made in the advertisements were conducted only with dentists in India.

“No cogent study or material was submitted by the company to substantiate the claims made in the advertisements or indicate any worldwide prominence of Sensodyne products. Thus, the claims were observed to be bereft of any reason or justification,” the ministry said.

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With respect to the claims of ‘clinically proven relief, works in 60 seconds’, the CCPA had written to the Drugs Controller General of India (DCGI) and Central Drugs Standard Control Organization (CDSCO) to furnish its comments on the correctness of the claims made by the company.

Post action from CCPA, CDSCO had directed the Assistant Drug Controller, Licensing Authority, Silvassa to investigate the claims made by the company since the product in question is manufactured under a cosmetic license granted by State Licensing Authority, Silvassa.

The Assisting Drug Controller came back to the CCPA stating that the claims made by the company are under investigation and further action will be initiated after the hearing process.

In view of the communication received from CDSCO and Assistant Drug Controller, Licensing Authority, Silvassa as regards the claim of “clinically proven relief, works in 60 seconds,” the matter is also pending with Assistant Drug Controller, State Licensing Authority, Silvassa.

To safeguard consumer interest, CCPA has issued two advisories. The first advisory was issued on January 20, 2021, calling industry stakeholders to cease making misleading claims that take advantage of the COVID-19 pandemic situation and are not supported by any competent and reliable scientific evidence.

The second advisory was issued on November 1, 2021, highlighting compliance with the provisions of Consumer Protection (e-commerce) Rules, 2020, which require every marketplace e-commerce entity to prominently display all information provided to it by the seller under Rule 6 (5), including name, designation and contact information of the grievance officer of the seller.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Nestle India plans up to 3-dozen product launches in 2019, eyes higher exports

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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FMCG major Nestle India has lined up nearly two-three dozen products that it plans to launch in calender year 2019 across categories in the country to drive its aggressive growth plans, Chairman and Managing Director Suresh Narayanan said on Monday.

The company, whose 6 percent revenues come from exports, is now looking to tap more overseas markets by targeting countries with higher Indian diaspora such as SAARC and South East Asia.

“In 2018, our core brands have performed well…We look forward for greater acceleration as we go forward….We have two-three dozen projects (products) in pipeline for launch in 2019. These products are across categories,” Narayanan told reporters.

Reiterating the company’s focus on the Indian market, he said, “As an organisation the one clarion call that we are working to is that we are in the business of growth to thrive and not to survive…It is not a survival mode that we look at the opportunity in India or the opportunity for growth..but a thriving mode.”

While the domestic market has been driving its growth, Narayanan said Nestle India would now look at expanding its export basket.

The company is looking at tapping overseas market with higher Indian diaspora such as SAARC and South East Asia to expand its exports, he added.

Commenting on fake news on nutrition, Narayanan said it was affecting choices and lives of people.

Therefore, Nestle India in partnership with Google, using a chatbot mechanism, will launch a personalised information dissemination website called “Ask Nestle”, he added.

“Ask Nestle seeks to be a reliable and anchor platform for nutrition and lifestyle information for customers. India is the only market where this website is being launched,” he added.

When asked if the company will in future also link Ask Nestle with its own e-commerce website for selling its products, he said it is a possibility.

“…Going forward it could morph into something bigger in terms of linking up with our own e-commerce intentions, if at all it happens. But today it is only for information sharing, dissemination and helping,” he said.

When asked if there has been any impact on sales of Maggi Noodles after Supreme Court revived government’s case in the National Consumer Disputes Redressal Commission (NCDRC) against Nestle India seeking damages of Rs 640 crore for alleged unfair trade practices, false labelling and misleading advertisements, Narayanan said “No”.

When asked if the company is looking for manufacturing capacity expansion, he said: “…This is a question that is coming up with active consultation. That exercise is on but I can not share more at this stage”.

Typically, our approach is to augment (capacity) at our existing factories, but it does not rule out a new manufacturing facility, Narayanan said.
Nestle India, at present, has eight factories across the country.

The company also did not rule out evaluating inorganic growth in the country and said it may consider it if any opportunity arises.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow