Supreme Court Orders BMW to Pay ₹50 Lakh for Defective Car

The Supreme Court has ordered BMW India to pay ₹50 lakh as compensation to a customer who bought a defective car in 2009. A bench led by Chief Justice D Y Chandrachud overturned a Telangana High Court decision that had previously quashed the complaint against BMW and directed the company to replace the faulty car.

The Supreme Court decided that BMW should pay the ₹50 lakh by August 10, 2024, through electronic transfer. This payment will settle all claims, and the previous order to provide a new vehicle will be nullified.

The court noted that in 2012, BMW had offered to replace the car, but the customer refused, demanding a refund instead. The car was returned to the dealer by the complainant.

The court ruled that continuing the legal process fifteen years after the complaint would not be just. Instead, the compensation will resolve the issue.

The original complaint was about a BMW 7 Series vehicle bought in September 2009. The car had defects and was taken to the workshop multiple times. A complaint was filed under Sections 418 and 420 of the Indian Penal Code, leading to an FIR against BMW’s management.