A customer booked a Mahindra XUV700 in 2022 but never received the SUV; four years later, a consumer commission has ordered Mahindra and its dealer to refund the booking amount with interest and pay Rs 62,000

NEW DELHI: A consumer commission in Haryana has held Mahindra & Mahindra and its authorised dealer guilty of deficiency in service and unfair trade practice after they failed to deliver a booked SUV or refund the advance payment. The commission directed them to refund Rs 21,000 with interest, pay Rs 51,000 as compensation and Rs 11,000 in litigation expenses.In its October 7, 2026, order, the District Consumer Disputes Redressal Commission, Yamuna Nagar, at Jagadhri, held the dealer and manufacturer jointly and severally liable, directing them to comply within 45 days.

Booked Mahindra XUV700 never delivered

According to the commission order, the customer booked a Mahindra XUV700 diesel automatic in Everest White on February 8, 2022, and paid Rs 21,000 as advance booking money. He was assured that the vehicle would be delivered within six to eight months.When he contacted the dealer in October 2022, after waiting nine months, he was told to wait another month. In November, he was again assured that delivery would happen soon.But in December 2022, the customer checked the vehicle’s booking status online and was surprised to find it marked as invoiced or sold. He alleged that the vehicle booked for him had been sold to someone else. When he questioned the dealer, he was not given a satisfactory answer and was asked to wait longer.The customer also lodged a complaint with the manufacturer through its toll-free number. He said the grievance was registered, but the issue remained unresolved. The SUV was never delivered, and the booking amount was not returned, prompting him to approach the commission in February 2025.However, the dealer denied promising delivery within six to eight months, claiming its staff had tried to contact the customer several times but received no response, so the SUV was allotted to the next person in line. It also denied receiving any extra money. Mahindra & Mahindra said the dealer was a separate entity responsible for the sale and claimed the customer had cancelled the booking, making him ineligible for relief.

Commission’s finding

The bench comprising president Rajbir Singh and members Jasvinder Singh and Suman Rana found that the dealer and manufacturer gave contradictory explanations about who received the booking amount and why the SUV was not delivered.The commission observed that “the opponents are self contradictory” in their claims about the payment and the customer’s alleged cancellation of the booking.It noted that neither side produced evidence to show that the customer had been contacted about delivery or had cancelled the booking. The commission also found no proof that the booking amount had been refunded or that the customer was informed the SUV had been allotted to someone else.The bench said the dealer and manufacturer could not escape liability by blaming each other.It observed that “it is the prime duty of opponents to ensure the delivery of the booked vehicle within time to the consumer/customer”. Holding both guilty of deficiency in service and unfair trade practice, the commission said their failure to deliver the SUV, refund the booking amount or resolve the grievance had caused the customer mental agony and harassment.

Final order

The commission allowed the complaint and directed the dealer and manufacturer, jointly and severally, to:

The order said the parties must comply within 45 days. If they fail to do so, the amounts awarded under the compensation and litigation-expense heads will carry 12 percent annual interest from the date of filing the complaint until realisation.