Hi Speedjet, my 2 cents on this: 1. Most dealerships have some cancellation charge, as others have also pointed out. I had booked my car initially at Bharati Auto (now closed). They specified a 10k cancellation charge. But when the Tata RSM told me of some problems with the dealership and requested me to transfer my booking to another dealer, I was not charged anything when I cancelled. 2. Whatever may be the cancellation charge, if the car offered is defective, the dealership loses this right. - I think you made a strategic mistake and left yourself at the dealership/Tata's mercy by not specifying the problems with the car as the reason for cancellation. Now you may not have any legal standing to claim anything. I presume that the dealer was trying to bully you knowing that he had no locus standi, till you gave in and removed the reason part. Looks like, as you said, the Tata RSM was hand-in-glove with the dealer all along. Do let us know what responses you get from FIAPL. I hope they have been following this thread.