High Court clears Mercedes in Rs 34.9L luxury car ‘fraud’

Kolkata: The Calcutta High Court has quashed criminal proceedings against Mercedes-Benz India Pvt. Ltd. in a case involving allegations of cheating and conspiracy, ruling that no prima facie case was made out against the car manufacturer in connection with the alleged sale of a used vehicle as new.

The complaint was filed by a cement manufacturing company based in Bongabari, Purulia, which alleged that it had purchased a Mercedes-Benz B-200D Sports model from an authorised dealer in December 2017. The complainant paid a total of Rs 34.93 lakh for the vehicle, which included a down payment of Rs 3 lakh, a main payment of Rs 29.11 lakh, and registration charges of Rs 1.81 lakh.

After taking delivery of the vehicle, the company discovered that it had earlier been registered in the name of another individual, Shanti Kumar Surana. The complainant claimed that the car had been fraudulently sold as new, and that both the dealer and the manufacturer were involved in the deception.

The complainant alleged that it had raised the issue with Mercedes-Benz India by e-mail and in person, and that the company had initially assured it would address

the grievance.

It was argued that this indicated the manufacturer had knowledge of the transaction and was therefore responsible.

However, the bench of Justice Jay Sengupta noted that the materials on record did not support the allegation of conspiracy. The court found that there had been no direct communication between the complainant and the manufacturer before the sale.

The court further observed that post-sale e-mails only contained a promise to look into the matter and did not indicate any admission of guilt or prior knowledge of the alleged fraud. A crucial legal finding in the judgment stated: “The petitioner cannot be made vicariously liable for anything that the dealer or any other agent might do in excess and beyond the arrangement entered into with the petitioner.”

Concluding that no prima facie case had been made out, the court quashed the proceedings against Mercedes-Benz India. It clarified that the trial court would remain free to reconsider the manufacturer’s role if credible evidence arises during trial.