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In what is believed to be India's first consumer court ruling linked to the country's E20 petrol rollout, a consumer disputes commission in Chhattisgarh has directed Maruti Suzuki and one of its dealers to replace a customer's Grand Vitara hybrid or refund its full purchase price after finding deficiencies in service and unfair trade practices.

The Raipur District Consumer Disputes Redressal Commission (Additional Bench) partly allowed the complaint filed by a Raipur-based kidney specialist, who alleged that E20 petrol damaged his Grand Vitara Strong Hybrid Zeta Plus, manufactured in January 2023.

The Commission directed Maruti Suzuki and its dealer to provide the complainant with a new E20-compatible vehicle of the same variant within 45 days. If that is not possible, they must refund the full purchase price of the vehicle.

Recurring faults after 21,913 km

According to the order, the vehicle developed engine-related problems after covering around 21,913 km. The dashboard displayed an engine warning light and the vehicle stalled repeatedly.

The complainant said the problem persisted despite changing fuel, cleaning the fuel tank several times and making repeated visits to the dealer's workshop.

He also told the Commission that Maruti Suzuki had offered to buy back the vehicle for Rs 12 lakh on a depreciated basis, which he rejected, seeking either a replacement or a full refund.

Maruti blamed contaminated fuel

Maruti Suzuki and the dealer contested the complaint, arguing that laboratory testing showed the fuel in the vehicle's tank was contaminated and contained only 6-7% ethanol despite being sold as E20.

The company maintained that there was no manufacturing defect in the vehicle, citing pre-delivery inspections and monitored test drives. It argued that damage caused by contaminated fuel falls outside the vehicle's warranty.

The Commission held that Maruti Suzuki and the dealer failed to clarify whether the specific model sold to the customer was compatible with E20 petrol, which has become the standard fuel at retail outlets across the country.

It observed that the recurring mechanical issues continued despite repeated repairs at the authorised workshop, supporting the complainant's claim that the defect had not been effectively rectified.

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The Commission also noted that although the car was sold as new, it had been manufactured about 17 months before its sale.

While partly allowing the complaint, the Commission declined to award the full Rs 50 lakh sought by th e complainant, which included compensation for alleged losses to his medical practice.

Compensation awarded

If Maruti Suzuki fails to replace the vehicle within 45 days, it has been directed to refund:

• Vehicle price: Rs 18,29,000

• RTO charges: Rs 1,86,850

• Insurance premium: Rs 34,644

The total refund amounts to Rs 20,50,494.

The Commission also awarded Rs 1 lakh as compensation for mental distress and Rs 10,000 towards litigation costs. If payment is delayed beyond 45 days, these two amounts will attract 7% annual interest from the date of the order.

Maruti Suzuki's legal representatives have said the issue of E20 fuel was never raised either in the original complaint or during arguments before the Commission and that the company was surprised to see E20 cited in the final order.

The company continues to maintain that adulterated fuel—not E20 petrol—caused the engine damage and has said it will challenge the ruling before the State Consumer Disputes Redressal Commission.

Gadkari rejects criticism

Separately, Union Road Transport and Highways Minister Nitin Gadkari rejected allegations of a conflict of interest over his support for the ethanol-blending programme.

In an interview with The Times of India, Gadkari described the allegations as politically motivated, saying his sons' business had only a limited presence in the ethanol sector and that he had no role in either the business or in determining ethanol prices or procurement.

He said the ethanol blending programme was initiated during the Atal Bihari Vajpayee government and later continued by the United Progressive Alliance (UPA) government.

Responding to concerns over engine damage, Gadkari said all vehicles certified for E10 fuel are compatible with E20 petrol and added that there had been no complaints linking E20 fuel to engine damage. He also said Maruti Suzuki had publicly maintained the same position.

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