An Indian consumer court has ordered Maruti Suzuki India (NSE:MARUTI, BOM:532500) to replace a customer's vehicle or pay 2 million Indian rupees in compensation after finding that mandatory E20 fuel damaged the car, local media reported Thursday, citing the court's order.
According to reports, the consumer court in the state of Chhattisgarh ruled in favor of the owner of a Grand Vitara SUV, who alleged that E20 fuel caused damage to the vehicle.
Maruti denied the allegations in a statement to Reuters, saying the Grand Vitara involved in the case was E20-compatible and designed to operate on the fuel, as stated in the owner's manual.
The ruling could set a precedent for greater automaker liability under India's ethanol-blended fuel policy, which promotes E20 fuel, to reduce crude oil imports and lower emissions, Reuters said.
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