Mahindra ordered to give full compensation after airbags failed to deploy in XUV300. Click to know details

Dr. Tarunpreet Saini, a physician at the Postgraduate Institute of Medical Education and Research (PGIMER) in Chandigarh, acquired a Mahindra XUV300 TGDI W8 petrol car on October 30, 2022, for a total amount of Rs 12,97,010. This sum covered the vehicle’s sale price, insurance, registration, and taxes. The delivery took place on November 24, 2022, from Harbir Automobile, a local Mahindra dealership. Shortly after, Dr. Saini, accompanied by a sales assistant, drove the car to a nearby petrol station, where she noticed an unusual odor in the cabin. The sales assistant attributed the smell to plastic wraps used during transportation.

**Crash and Airbag Malfunction**

The situation escalated when Dr. Saini’s vehicle collided with another car and subsequently crashed into the dealership’s boundary wall, just 45 minutes after taking delivery. Although Dr. Saini sustained only minor injuries, she was alarmed to discover that the airbags had failed to deploy during the accident, raising serious concerns about the vehicle’s safety.

**Complaint and Legal Proceedings**

Following the accident, Dr. Saini confronted dealership representatives about the airbags. Their explanation—that the accident was too minor for airbag deployment—was unsatisfactory. She filed a formal complaint on November 26, 2022, seeking an explanation and a safety assurance from both the dealership and Mahindra & Mahindra. Despite the dealership’s attempt to repair the car and return it to Dr. Saini on December 19, 2022, she refused delivery due to a lack of safety assurance.

**Consumer Commission Ruling**

Frustrated by the lack of resolution, Dr. Saini took legal action, filing a complaint with the Consumer Commission. The lower Commission ruled in her favor, ordering Mahindra & Mahindra to refund the full purchase amount of Rs 12,97,010, plus Rs 25,000 for mental distress and Rs 10,000 for legal costs. Mahindra contested this decision, arguing that the accident was minor and that the airbags’ non-deployment was not a service deficiency.

**State Commission Upholds Ruling**

The State Consumer Disputes Redressal Commission of Chandigarh reviewed the case and upheld the lower Commission’s decision. The State Commission found that the accident was significant enough to have triggered the airbags and dismissed Mahindra’s claims that the accident was minor. The court concluded that the failure of the airbags represented a serious service deficiency.

**Final Compensation Awarded**

As a result, Mahindra & Mahindra has been directed to pay Dr. Saini a total of Rs 13.32 lakh, which includes the refund of the purchase price, compensation for mental agony, and litigation costs. This ruling underscores the critical importance of vehicle safety features and consumer rights.