Raipur: A consumer court in Raipur has directed an automobile manufacturer and its authorised dealer to either replace a customer’s vehicle with an E20-compatible model or refund nearly Rs 20.5 lakh, after ruling that the car repeatedly developed engine problems allegedly linked to E20 petrol. According to media reports, the case is believed to be India’s first consumer court ruling involving an E20 fuel-related dispute.
The District Consumer Disputes Redressal Commission held that the customer had been sold a vehicle that was not suitable for E20 fuel despite the nationwide rollout of ethanol-blended petrol.
The commission ordered the manufacturer to provide a new vehicle of the same model that is compatible with E20 fuel within 45 days. Failing this, the company must refund the full purchase price, along with registration charges, insurance and other related expenses.
According to media reports, the customer purchased the hybrid SUV in June 2024. Within a few months, the vehicle allegedly began displaying engine malfunction warnings and suffered repeated breakdowns. Although the car was repaired several times, the owner claimed the problem persisted.
Initial service inspections attributed the issue to contaminated fuel. However, subsequent examinations reportedly detected a recurring white residue inside the fuel tank, fuel lines and fuel filters. The manufacturer later informed the customer that the engine required replacement at an estimated cost of Rs 5.3 lakh, stating that the repair was not covered under warranty.
Laboratory analysis of fuel samples reportedly confirmed the presence of ethanol. The commission observed that the ethanol had separated from the petrol, forming a white layer at the bottom of the sample. Based on the evidence presented, it concluded that the vehicle was not compatible with E20 fuel and held both the manufacturer and the authorised dealer liable for deficiency in service.
In addition to ordering the replacement or refund, the commission awarded Rs 1 lakh as compensation for mental harassment and Rs 10,000 towards litigation costs.
The automobile manufacturer has said it will challenge the order, maintaining that the vehicle is fully compatible with E20 fuel and asserting that the commission’s findings do not accurately reflect the facts of the case.
