The National Consumer Disputes Redressal Commission (NCDRC) has asked the German car maker to pay Rs 10.25 lakh to C G Power and Industrial Solutions Limited, also known as Crompton Greaves, the owner of the vehicle.
Sudhir M Trehan, former Managing Director of electrical company 'Crompton Greaves', had met with an accident while riding E240 car, one of the models, on account of faulty frontal airbags.
"The opposite parties indulged in acts of unfair trade practice by not giving complete material information to the buyers with respect to the functioning and triggering of the front airbags provided in the car," a bench presided by NCDRC member V K Jain said.
"I hold that the frontal airbags of the vehicle were defective and that was the reason they did not deploy even in a frontal collision between the car and a container truck which had resulted in severe damages to the front portion of the car," he said.
More From This Section
It also awarded Rs 5 lakh to the company, which owned the car, for the unfair trade practice indulged into by the maker and Rs 25,000 as cost.
According to the compliant, C G Power and Industrial Solutions Limited, purchased the car for its MD in 2002 after paying Rs 45.38 lakh, which was proclaimed by the manufacturer to be the safest on road.
It further alleged that the driver suffered minor injuries while Trehan suffered grievous injuries and was hospitalised for more than six weeks.
The complaint claimed that despite collision, none of the air bags of the vehicle opened and that had the air bags opened in time, the MD might have suffered less injuries or probably no injury at all.
"The Manual ... Does not disclose as to what the said predetermined level was. If the front airbags were not to deploy in every accident resulting in front end impact, the opposite parties (car maker), in my view, ought to have disclosed to the buyers as to what the predetermined level necessary to trigger the front passenger airbag were.
"Highlighting the safety features including the airbags for selling the vehicle, without such a disclosure, in my opinion, constituted an unfair and deceptive trade practice," it added.