T.V.S. Credit Ordered to Return Tractor or Pay ₹2.45 Lakh to Farmer

<p>HYDERABAD: The District Consumer Disputes Redressal Commission, Nalgonda, has directed T.V.S. Credit Services Limited to return a tractor to an agriculturist or pay ₹2.45 lakh with 9% annual interest if it has already sold or transferred the vehicle to a third party. The commission found deficiency in service in the financier’s repossession and sale of [...]<content:encoded><![CDATA[<strong>HYDERABAD:</strong> The District Consumer Disputes Redressal Commission, Nalgonda, has directed T.V.S. Credit Services Limited to return a tractor to an agriculturist or pay ₹2.45 lakh with 9% annual interest if it has already sold or transferred the vehicle to a third party. The commission found deficiency in service in the financier’s repossession and sale of the tractor. The commission passed the order on September 2, 2026, in Consumer Complaint No. 34 of 2025. Chittipolu Amarender, 45, of Sunkenpally village in Chityal mandal, filed the complaint. The Nalgonda district administration lists Sunkenpally as a village under Chityal mandal. The complaint involved tractor TS-05-EA-0920. Amarender said he bought the tractor for ₹2.45 lakh for agricultural work. T.V.S. Credit Services sanctioned a loan of ₹2,33,966 on July 18, 2023. The repayment schedule covered 12 quarterly instalments over three years. According to the order, Amarender paid ₹52,000 towards the first instalment. He later defaulted on the remaining payments. Amarender alleged that representatives of the financier took the tractor from his house on August 30, 2024. He said they did so in his absence and without following the required procedure. T.V.S. Credit Services disputed the allegation. The company told the commission that Amarender voluntarily surrendered the tractor after repeated defaults. It said it issued a pre-sale notice on August 31, 2024. The financier also said it sold the tractor through an online bidding process on September 24, 2024, for ₹1.70 lakh. It later sought ₹52,983 from Amarender as the balance amount. <h3>Commission cites failure to follow seizure procedure</h3> The commission examined the repayment schedule, loan agreement, notices, medical records and other documents submitted by both sides. It found that the financier did not produce evidence showing that Amarender had voluntarily surrendered the tractor. It also found no material to establish that the financier followed the prescribed procedure while taking possession of the vehicle. The commission referred to the procedure governing the seizure of financed vehicles. It said the financier failed to show that it had complied with those requirements. The commission also relied on a National Consumer Disputes Redressal Commission ruling on forcible repossession. It held that field personnel cannot take possession of a financed vehicle without following the required procedure. The commission therefore held T.V.S. Credit Services Limited liable for deficiency in service and unfair trade practice. The commission dismissed the complaint against the Regional Transport Authority, Nalgonda. <h3>Financier barred from recovering ₹52,983 sale loss</h3> The commission directed T.V.S. Credit Services to return tractor TS-05-EA-0920 to Amarender if it has not transferred the vehicle to a third party. Amarender can then continue paying the remaining loan instalments. If the financier has already transferred the tractor to a third party, it must pay ₹2.45 lakh to Amarender. The amount will carry 9% annual interest from August 30, 2024, until realisation. The commission also awarded ₹20,000 as punitive damages and ₹1 lakh as compensation for mental agony. It directed the financier to pay another ₹10,000 towards legal expenses. The commission further directed T.V.S. Credit Services not to recover the ₹52,983 loss-on-sale amount from Amarender. ]]>