Mahindra & Mahindra (hereinafter referred to as “M&M” pr “Mahindra”) is a renowned Indian brand, which traces its roots to pre-independent era. With time, the company has only improved itself, both technologically as well as socially. Thus, the company has built a distinguished image of itself on the global map, when it comes to automobiles, especially SUVs. Their vehicle in the recent times have gone beyond the set benchmark in the automotive industry, wherein its chairman Shri Anand Mahindra by his strong social and societal presence has further cemented the values of trust, respect and honour when it comes to Mahindra. 
It has been a matter of observation that in the recent years, or so to speak in the last 2 to 3 decades, Mahindra employed a strategy wherein they would create a hype before launching a vehicle and so much so that people around the country would line up to purchase a part of their technology. This technique has flourished their business on a global level. With the 60-70 years old trust that Mahindra name carries, people tend to invest huge sums  i.e. 30-40 Lacs in purchasing their flagship vehicle XUV7OO. 

When XUV7OO was launched in 2021, it had immediately gathered about 75,000 bookings as per the company’s statement, wherein the delivery time at some locations and models went for more than 2 years! There swept in the brokers and agents who promised prompt delivery of the vehicles. Thousands of people are witnesses of this illegality, wherein they were compelled to shell out extra money to get their cars!

Pertinently, till the year 2023, the delivery time and prices of the XUV7OO vehicle were consistent wherein the company always stated that due to global shortage of semi-conductors, the delivery period would be stagnant, wherein they would try to reduce it, although they price would only increase owing to the advanced technology. 

 

Towards the end of 2023, the primal competition of XUV7OO, the TATA Safari facelift was launched, another car from a legendary company with known globally for its values. Right after this vehicle was launched, the Mahindra magically slashed the waiting period for XUV700 by months also owing to the fact that many of the vehicles had started to show ot technical issues which M&M could not have been tackled! Although, in the garb of special offer and to the surprise more than 1.5 Lacs XUV7OO owners, the company in order to remain in the top position and to illegally fight the competition given by TATA Safari which has given even more advanced features which the XUV7OO could not incorporate, decreased the price of XUV7OO by about 2.5 Lacs on road exploiting their dominant position in the market, which has created a great disturbance in the automobile markets, both new as well as used car. Many people who had loaned money for 5-8 years to purchase the M&M vehicle have been cheated as their vehicle has lost its value already before they could even properly own it. The said reduction has been done illegally to seek more customers, thinking zilch about the Lacs of people who are at a loss owing to the illegal trade practices of the company. 

Important laws blatantly ignored:

Section 12B of MRTP Act,1969.

 

POWER OF THE COMMISSION TO AWARD COMPENSATION 

 

(1) Where, as a result of the monopolistic or restrictive, or unfair, trade practice, carried on by any undertaking or any person, any loss or damage is caused to the Central Government, or any State Government or any trader or class of traders or any consumer, such Government or, as the case may be, trader or class of traders or consumer may, without prejudice to the right of such Government, trader or class of traders or consumer to institute a suit for the recovery of any compensation for the loss or damage so caused, make an application to the Commission for an order for the recovery from that undertaking or owner thereof or, as the case may be, from such person, of such amount as the Commission may determine as compensation for the loss or damage so caused. 

 

(2) Where any loss or damage referred to in sub-section (1) is caused to numerous persons having the same interest, one or more of such persons may, with the permission of the Commission, make an application, under that sub-section, for and on behalf of, or for the benefit of, the persons so interested, and thereupon the provisions of rule 8 of Order I of the First Schedule to the Code of Civil Procedure, 1908 (5 of 1908), shall apply subject to the modification that every reference therein to a suit or decree shall be construed as a reference to the application before the Commission and the order of the Commission thereon. 

 

(3) The Commission may, after an inquiry made into the allegations made in the application filed under sub-section (1), make an order directing the owner of the undertaking or other person to make payment, to the applicant, of the amount determined by it as realisable from the undertaking or the owner thereof, or, as the case may be, from the other person, as compensation for the loss or damage caused to the applicant by reason of any monopolistic or restrictive, or unfair, trade practice carried on by such undertaking or other person. 

 

(4) Where a decree for the recovery of any amount as compensation for any loss or damage referred to in sub-section (1) has been passed by any court in favour of any person or persons referred to in sub-section (1), or, as the case may be, sub-section (2), the amount, if any, paid or recovered in pursuance of the order made by the Commission under sub-section (3) shall be set off against the amount payable under such decree and the decree shall, notwithstanding anything contained in the Code of Civil Procedure, 1908 (5 of 1908), or any other law for the time being in force, be executable for the balance, if any, left after such set off.

 

Section 32

MONOPOLISTIC TRADE PRACTICE TO BE DEEMED TO BE PREJUDICIAL TO THE PUBLIC INTEREST EXCEPT IN CERTAIN CASES 

 

For the purposes of this Act, every monopolistic trade practice shall be deemed to be prejudicial to the public interest, except where - 

 

(a) such trade practice is expressly authorised by any enactment for the time being in force, or 

 

(b) the Central Government, being satisfied that any such trade practice is necessary - 

 

(i) to meet the requirements of the defence of India or any part thereof, or for the security of the State; or 

 

(ii) to ensure the maintenance of supply of goods and services essential to the community; or 

 

(iii) to give effect to the terms of any agreement to which the Central Government is a party, by a written order, permits the owner of any undertaking to carry on any such trade practice.

Section 4 of The Competition Act, 2002.