Competition Commission of India (CCI) has relieved Mahindra & Mahindra by dropping the case that was filed against the largest Utility Vehicle (UV) manufacturer of India by Rajasthan-based Sanjeev Pandey. The case has been filed by Pandey against Mahindra as the latter is said to have not delivered its XUV 500 Sports Utility Vehicle (SUV) to him within the committed time-frame.
In September 2011, the company launched the XUV 500 SUV in India, which garnered immense appreciation from auto experts from all quarters. Due to heavy demand for the model, Mahindra took orders for the vehicle in just two slots, spanning 10 days each, once in October 2011 and then in January 2012. In both booking sessions, the company experienced huge demand for the vehicles, with orders for 8000 units in the first phase and 25000 units in the second one. However, the limited booking period dissatisfied the fans of Mahindra, who wanted to own the powerful SUV as soon as possible.
In his complaint, Pandey stated that XUV 500 SUV is being offered by Mahindra in major Indian cities and metros only. According to him, people of smaller cities and towns who want to buy this SUV have been suffering due to the company’s policy. Hence, they are compelled to buy the car from bigger cities and pay heavy taxes. This practice, according to Pandey, amounts to exploitation of customers.
CCI, in its reply, mentioned that the matter should be filed under Consumer Protection Act, 1986 as the issue does not come under its jurisdiction. It also added, "There was no prima face case made out against the Mahindra & Mahindra for referring the matter to DG for investigation. It is a fit case for closure under section 26(2) of the Act and is hereby closed."
