Cars in India can no longer be sold on a "as is where is basis"

The State Consumer Commission has pulled up Maruti Udyog Ltd (MUL) for allegedly selling a defective car in an auction to a person without giving an opportunity to get the vehicle inspected and asked it pay Rs 25,000 as compensation.

"Keeping a consumer in dark to get rid of defective or unusable goods, under the garb of sale or auction on 'as is where is basis' is unfair and unethical practice," Justice J D Kapoor, President of the Commission, said in a recent order.

"To mention such terms in the contract that all the vehicles are sold with all faults on "as is where is basis" without providing opportunity to the purchaser to get them checked by the expert before auction of such goods is to put the consumer in a highly disadvantageous position," it said.

Source

This ruling has major implications on future car sales in India via auctions.