The Odisha government has warned vehicle dealers that if they continue to overcharge, they would face legal action.

Following complaints that automotive dealers were overcharging buyers of new vehicles, the Odisha government today issued a warning to the dealers, threatening them with legal action if they continued to overcharge buyers of new vehicles.

The State Transport Authority (STA) of Odisha has sent a letter to all RTOs, instructing them to ensure that dealers in their jurisdictions do not engage in such conduct.

In the letter, the Transport Commissioner-cum-Chairman of STA Odisha stated that, despite directives provided in 2014, some dealers have been detected collecting extra money from new car purchasers for handling charges, registration expenditures, and extended warranty rates, among other things.

Furthermore, despite the fact that the registration fee for new automobiles was decreased from Rs 282 to Rs 140, the STA Chairman pointed out that some dealers are not passing on this benefit to customers and continue to charge the higher rate.
According to the senior transportation official, all RTOs should organise meetings of automotive dealers within their control in accordance with COVID regulations, and advise them not to overcharge buyers.

The RTOs have also been ordered to ensure that all dealers post details of the payment to be made by the buyer for each category of the vehicle on a notice board in a prominent location in their showroom so that buyers may see it. It should be stated on the board that no more payment is required beyond what is stated on the display board.

“On the display board, all charges, whether mandatory or optional, must be clearly stated. The dealer must issue a receipt for all charges made in this manner. Dealers must also follow a similar method when issuing quotations. Furthermore, a dealer cannot compel a buyer to ensure the vehicle with him. The RTOs will audit all automotive showrooms to ensure that the directions on the notice board/display board are followed, and will submit a report to the STA office within the next two weeks,” according to the Transport Commissioner’s directive.

In the event that rogue dealers violate the instructions, the official warned that legal action would be taken against them.