E20 Fuel's First Setback: Consumer Court Orders Maruti Suzuki To Refund Or Replace Damaged Car

India's ethanol-blended fuel programme has encountered what is being seen as its first significant legal setback after a consumer court in Chhattisgarh directed Maruti Suzuki to replace a customer's vehicle with an E20-compatible model or refund the full purchase cost.

The Raipur District Consumer Disputes Redressal Commission (Additional Bench) partly allowed the complaint filed by a Raipur-based kidney specialist, who alleged that the use of E20 petrol had led to repeated failures in his Grand Vitara Strong Hybrid Zeta Plus, manufactured in January 2023, as per a report by CNBC-TV18.

The doctor claimed that the vehicle began experiencing problems after covering around 21,913 km. The dashboard reportedly displayed an engine warning before the vehicle stalled. Although the car underwent multiple fuel changes, fuel-tank cleaning procedures and repeated servicing at an authorised workshop, the fault continued to reappear after short distances.

The complainant rejected an offer from Maruti Suzuki to buy back the vehicle for ₹12 lakh on a depreciated basis and instead sought either a replacement vehicle or a full refund.

What Did Maruti Suzuki Say?

Maruti Suzuki and its dealer disputed the allegations, arguing that laboratory testing found contaminated fuel in the vehicle.

The company claimed the ethanol concentration was only 6-7%, despite the fuel being sold as E20, and maintained that external fuel contamination was not covered under the vehicle warranty.

It also said pre-delivery inspections and monitored test drives had not identified any manufacturing defect.

Commission Cites Service Deficiency

The Commission observed that the company and dealer had not clarified whether the specific vehicle sold was compatible with E20 fuel, which has now become widely available across fuel stations.

It held that this amounted to a deficiency in service and an unfair trade practice.

The Commission also noted that the vehicle continued to develop the same fault despite repeated repairs and pointed out that it had been sold approximately 17 months after its manufacture.

While the complainant had sought ₹50 lakh, including compensation for losses to his medical practice, the Commission granted only partial relief.

Refund or Replace Within 45 Days

According to the order, Maruti Suzuki has been directed to provide a new E20-compatible vehicle of the same variant within 45 days.

Failing that, the company must refund ₹20,50,494, comprising the vehicle's purchase price of ₹18,29,000, RTO charges of ₹1,86,850 and insurance premium of ₹34,644.

The Commission also awarded ₹1 lakh as compensation for mental distress caused by repeated breakdowns and workshop visits, along with ₹10,000 towards litigation expenses.

If these amounts are not paid within 45 days, they will attract annual interest at 7% from the date of the order.

Maruti To Appeal

Maruti Suzuki's legal representatives have said that E20 fuel was never mentioned in either the original complaint or the arguments presented before the Commission.

According to CNBC-TV18, the company maintains that fuel adulteration caused the engine damage and has challenged the ruling before the State Consumer Dispute Redressal Commission.

Gadkari Rejects Criticism On E20

Union Road Transport and Highways Minister Nitin Gadkari dismissed allegations of any conflict of interest linked to his support for ethanol-blended fuel.

Speaking to The Times of India, Gadkari described the criticism as "politically motivated", saying his sons' ethanol business represented only a small part of the industry. He added that the business carried debt of ₹1,600 crore and that he had no role in its operations, pricing or procurement decisions.

Responding to concerns over engine damage, Gadkari said, "All E10-compliant vehicles are fit for using E20 fuel. There have been no complaints so far about the fuel damaging the engine. Maruti Suzuki has publicly stated so."