MRTPC notice to Daimler in compensation case

The Monopolies and Restrictive Trade Practices Commission has issued a notice to global auto giant DaimlerChrysler AG, Germany, in a compensation case filed by a customer alleging that the luxury carmaker gave misleading information on safety features of its cars.

The notice was issued on a plea by Dinesh Kumar Mittal, director of Indore-based Amit Securities, alleging the company cheated and induced its customers to purchase its Mercedes S-Class model. He also sought a compensation of Rs 5 crore (Rs 50 million).

Mittal, who bought a Mercedes S-Class vehicle in March 2002, had said although the company claimed its cars were equipped with various safety features, its airbags and anti-lock braking system did not work during an accident, leading to a death of a co-passenger.

MRTPC has given the German auto major four weeks to file reply after the company had sought additional time.

Earlier, on October 17 last year, during proceedings in MRTPC, the company's Indian subsidiary DaimlerChrysler India Ltd had contended its parent company should not be impleaded.

However, the commission rejected it and said: "The main grievance of the complainant appears to be about misleading claims allegedly made by the manufacturers regarding the quality of the car and its various functions for which manufacturing company is answerable."

DaimlerChrysler earlier imported completely built units of S-class models and only last year started local assembly at its Pune unit.