Car rental operator ‘fails’ to provide booked vehicle, man wins Rs 43,000 compensation

A man booked a vehicle from a car rental operator for 10 days, but the operator failed to provide one despite taking advance payment. The consumer commission awarded him Rs 43,000 in total, holding the operator guilty of deficiency in service and unfair trade practice.

President G Nagaraju, along with member V Janardhan Reddy of the Warangal District Consumer Commission, was hearing the complaint of a 29-year-old man who rented the car in August 2023. He claimed that he had to hire a vehicle from another rental agency at a higher fare because the operator failed to provide the one he had booked.

“In view of the above facts and circumstances of the case, we are of the considered opinion that there is a deficiency of service and also unfair trade practice adopted by the opposite party (car rental operator),” the October 16 order read. 

Did not respond to calls 

The man claimed that he contacted the operator, which had been running a car rental business for about two years. He booked a car for the period from August 3 to August 13, 2023, at a rate of Rs 20 per kilometre. The operator also stated that Rs 2,000 would be payable to the driver as allowance.

Accordingly, the complainant paid an amount of Rs 30,000 as advance, but on the date of booking, he had called the operator over the phone several times, but they allegedly failed to answer the phone calls, and also they did not call back and ignored the calls of the complainant. 

He claimed that he had no option but to book another car at short notice from a different rental agency, paying a higher fare. Aggrieved, he approached the commission seeking a refund and compensation for the alleged deficiency in service. 

‘Did not provide service as agreed’

The commission noted that the rental car operator failed to contest the case and did not file their submission. 

Story continues below this ad

The commission clarifed that the rental operator failed to provide the service as agreed despite receiving the amount of Rs 30,000 as an advance. “The opposite party (car rental operator) failed to attend the phone calls and also failed to give any reply as to why he could not arrange the car and failed to refund the amount, which amounts to deficiency of service and unfair trade practice,” it observed.

Accordingly, the commission directed the car rental operator to refund Rs 30,000, which was paid as an advance along with interest at the rate of 12 per cent per annum from the date of booking the vehicle till its realisation to the complainant. 

The rental operator was also directed to pay Rs 10,000 towards compensation for mental agony and financial loss and Rs 3,000 towards costs. 

Takeaway

This ruling highlights that car rental operators can be held liable for deficiency in service and unfair trade practice when they accept advance payments but fail to provide the promised service or refund the money.

Story continues below this ad

Aggrieved consumers may contact the consumer helpline in their respective states (Telangana: 0771-2582902) or call the National Consumer Helpline at 1915 for assistance.

Don’t miss out on these stories:

Plot registration ‘delayed by years’, realtor told to pay man Rs 1 lakh, execute sale deed

Family trip marred by ‘5-hour airport delay, poor hotels, extra bill’, man wins Rs 38,000

No classes started, yet institute ‘denies’ fee refund, student gets Rs 39,500 payout