Crompton Greaves Consumer Electricals Receives Consumer Commission Order in Rohtak Case; Financial Impact Limited to ₹10,300

What Happened ?

key details

Authority Passing the Order:

• Authority: District Consumer Disputes Redressal Commission
• Location: Rohtak, Haryana

Nature of the Order:

The Commission directed Crompton Greaves Consumer Electricals to:

• Replace the defective 1.5 H.P. motor.
• Pay ₹5,000 as compensation.
• Pay ₹5,000 towards litigation expenses.
• Pay ₹100 per week from 29 June 2026 until realization in case of delay in compliance.

Background of the Complaint:

• The consumer alleged that a 1.5 H.P. Crompton motor purchased under the company’s brand was not functioning properly.
• The matter was adjudicated before the District Consumer Disputes Redressal Commission.

Financial Impact:

The company quantified the immediate financial impact at:

• ₹10,300

This comprises the replacement obligation, compensation, and litigation-related costs as disclosed in the regulatory filing. Any additional weekly penalty would depend on the timing of compliance with the Commission’s order.

Regulatory Disclosure:

• The disclosure has been made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
• The filing relates to a consumer dispute and does not indicate any broader operational or regulatory action against the company.

Risk Analysis

Summary:

• The matter relates to an individual consumer complaint with a limited financial implication. Based on the disclosed information, the order is not expected to have a material impact on the company’s financial position or business operations.

Key Risks:

• Potential accrual of weekly penalty if compliance is delayed.
• Similar consumer complaints, if recurring, could affect customer perception.
• Ongoing product quality and after-sales service remain important for maintaining brand reputation.

Worst Case:

• Failure to comply with the order within the prescribed timeline could result in additional financial liability through weekly penalties and further legal proceedings.

Risk Level: Low

Company Commentary

• The company has disclosed the consumer commission order in compliance with SEBI Listing Regulations.
• The order requires replacement of the product and payment of compensation and litigation costs.
• The quantified financial impact has been disclosed as ₹10,300.
• The order was received by the company on 14 July 2026.