Kathmandu: In a landmark ruling, Nepal’s Consumer Court has confirmed that Morang Auto Works (MAW), the official distributor of Yamaha motorcycles in Nepal, and its dealer deceived customers by selling old models as brand-new bikes.
The court found that MAW and Kathmandu-based dealer GRS Two Wheelers Auto Pvt. Ltd. had defrauded a customer, ordering them to pay compensation of Rs 393,000 to victim Nanikaji Khadka of Nuwakot.
MAW, the Yamaha distributor in Nepal, is owned by former Federation of Nepalese Chambers of Commerce and Industry (FNCCI) president Bishnu Agrawal. The involvement of such a high-profile businessman in consumer fraud has sparked concern that public trust in private sector leaders could erode.
Khadka purchased a Yamaha FZ-X BS6 motorcycle (engine no. G3N5E0294531, chassis no. ME1RG732BN0030942) from GRS Two Wheelers Auto Pvt. Ltd. on 4 October 2024. He paid Rs 445,900 for the motorcycle, which was registered under plate no. Lu 91 Pa 675.
The seller assured him that the bike was a 2024 model with an 18-month warranty, covering the engine, battery, and other parts. However, when Khadka later received the registration certificate, it showed the bike had actually been manufactured in 2022.
Despite repeated requests, the dealer never provided VAT or PAN bills, issuing only a receipt.
Soon after purchase, Khadka reported multiple issues including self-start not functioning, battery failure, weak pickup, excessive smoke emission, high fuel consumption, engine troubles, and paint peeling.
Although the motorcycle was supposed to be under warranty, Khadka was forced to spend Rs 3,501 on repairs at a service center and later had to replace the battery at his own cost.
When he approached the dealer and MAW, both refused to honour the warranty, with MAW directing him back to the dealer.
Court documents revealed significant discrepancies. The purchase invoice listed the production year as 2024, while official registration documents confirmed 2022. Invoices from MAW Enterprises to GRS Two Wheelers also indicated the motorcycle had been manufactured in July 2022. Despite claiming an 18-month warranty, the companies later admitted in court that the warranty period was only one year.
The court ruled that this constituted false advertising, misrepresentation, and a clear violation of the Consumer Protection Act 2018.
Court verdict
On June 17, the bench of Consumer Court Chair Ram Prasad Simkhada and members Govindaraj Regmi and Anandraj Pokhrel ordered GRS Two Wheelers Auto Pvt. Ltd. and MAW Pvt. Ltd. to jointly compensate Khadka with Rs 393,000.
The ruling confirmed that the companies had knowingly sold a 2022-manufactured motorcycle as a 2024 model and failed to provide promised warranty services, thereby causing financial, mental, and social harm to the consumer.
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