CG Holdings has settled a consumer complaint filed against it in Nepal's newly established Consumer Court, marking one of the first cases resolved through the judicial body.
On March 16, Ramsagar Yadav, a resident of Siddhivinayak, Lalitpur Metropolitan City-18, lodged a formal complaint accusing CG Holdings, the Suzuki Service Center in Dallu, Surya Automobiles in Thapathali, and associated individuals of fraud related to vehicle repair services.
According to Yadav, his Maruti Grand Vitara Smart Hybrid was significantly devalued after the engine was opened and tampered with during an extended repair period—allegedly without his consent. He claimed this unauthorized intervention not only damaged the vehicle but also diminished its resale value.
Shobhakar Kharel, an official at the Consumer Court, confirmed to Aarthik Abhiyan, a sister publication of New Business Age, that the matter had been resolved through mutual agreement.
Yadav subsequently withdrew his complaint after being compensated in line with his demands. He had originally sought a refund of Rs 6.269 million.
According to a source close to Yadav, the case was resolved after the company agreed to replace all internal engine components with brand-new parts and cover the full cost of repairs.
The vehicle in question was purchased from Surya Automobiles Pvt. Ltd. on January 21, 2024. It sustained damage during flooding in the last week of September 2024.
Following a police report prepared by the Bungamati police, Yadav filed for a vehicle replacement under his insurance and warranty coverage. The vehicle was handed over to the service center for repairs, but Yadav later alleged that it was held for over five months and subjected to unauthorized repairs, further lowering its value.
The Consumer Court had earlier issued a notice encouraging an amicable settlement, prompting CG Holdings to engage in dialogue with the complainant.
Notably, Arun Chaudhary, the head of CG Holdings, is the brother of Binod Chaudhary, a Nepali Congress lawmaker and Nepal’s only dollar billionaire.
