Bengaluru consumer court slaps ₹40,000 penalty on man for false complaint against Hyundai Motors

In a noteworthy judgment, the Bengaluru Urban District Consumer Disputes Redressal Commission has imposed a ₹40,000 penalty on a customer for filing a “malicious” complaint against Hyundai Motors India Ltd, after having already claimed insurance and sold off the car in question.

The complaint was filed by Mohan, a resident of Bengaluru, who alleged service deficiency by Hyundai following a fire incident involving his car. The commission, headed by President K. Anita Shivakumar and member Suma Anil Kumar, observed that the complainant had already received ₹3 lakh as compensation from his insurance provider and subsequently sold the vehicle, thereby losing any legal standing to pursue further claims.

The commission ruled that by doing so, the complainant had misused the judicial process and wasted the forum's valuable time. It directed Mohan to pay the penalty amount to the Consumer Welfare Fund within 30 days, failing which a 10% annual interest would be levied.

Mohan had purchased a Hyundai car in May 2019 for ₹5,22,595 and had been availing services from Hyundai’s authorised service centres. On April 11, 2024, he had paid ₹14,866 to extend his vehicle warranty. On October 25, 2025, while driving, the car’s brakes allegedly failed. Upon stopping and opening the bonnet, he noticed smoke and fire, prompting him to send the car to the service centre.

The authorised service staff estimated repairs at ₹6.7 lakh. Mohan’s insurer attributed the fire to a mechanical fault, which fell within the warranty period. The customer then raised a complaint against Hyundai, citing persistent mechanical issues — including recurring gearbox defects that he claimed had not been adequately addressed despite multiple reports to the company.

However, the forum, after reviewing all submitted documents, stated that since the car had been sold post-incident, the ownership — and thus legal claim — had transferred to the buyer. As such, Mohan could not stake any further claims, especially after already receiving insurance compensation.

Calling the complaint an attempt at “unlawful gain,” the commission deemed the case as one filed without “clean hands” and issued a ₹40,000 penalty for misusing the legal process.