Rajasthan HC Stays Probe against Shah Rukh Khan, Deepika Padukone and Top Executives in Hyundai Alcazar Defect Case

Moneylife Digital Team 11 September 2025

Economy & Nation

The Rajasthan High Court has stayed the investigation in a Bharatpur police case that named Hyundai Motor India Ltd’s top executives, along with Bollywood actors Shah Rukh Khan and Deepika Padukone, brand ambassadors of the company, over allegations of defects in a Hyundai Alcazar vehicle.

Justice Sudesh Bansal, hearing four criminal miscellaneous petitions filed by Hyundai Motor India Ltd's managing director (MD) Unsoo Kim, chief operating officer (COO) Tarun Garg and actors Mr Khan and Ms Padukone, noted that the complaint did not disclose any prima facie cognisable offence against them and appeared to be a misuse of process.

The first information report (FIR) was registered at Mathura Gate police station at Bharatpur, on 12 June 2025, after a direction by the additional chief judicial magistrate. The complaint was filed by a buyer who had purchased a Hyundai Alcazar (1.5 AT Signature Black) in June 2022 and claimed that the car repeatedly suffered technical faults, causing hardship.

The complainant sought replacement of the vehicle or a refund of the cost, but alleged that Hyundai and its dealer, Malwa Auto Sales Pvt Ltd, did not respond. On that basis, an FIR was registered under Sections 406 (criminal breach of trust), 420 (cheating) and 120-B (criminal conspiracy) of the Indian Penal Code (IPC) (now Bharatiya Nyaya Sanhita, 2023-BNS).

Counsel for Hyundai executives argued that implicating company executives and brand ambassadors was 'arbitrary and malicious', as neither the MD nor COO personally handled sales or service, and the actors had 'no connection or nexus' with the sale or after-sales process.

The petitioners also pointed out that Hyundai Motor India was not even made a party to the complaint, and that the concept of vicarious liability does not exist under the IPC/BNS. The complaint, they say, should have been addressed through remedies under the Consumer Protection Act, 2019, rather than criminal prosecution.

The High Court issued notice to the complainant and directed the registry to summon records from the judicial magistrate at Bharatpur, including the order that led to the FIR. Until the next hearing on 25 September 2025, further investigation in the FIR against the petitioners will remain stayed.

In its order, the court also suggested mediation as a way forward: “With an intent to prevent further litigation, the grievance of the complainant, whatsoever may be, can be resolved through mediation. For that purpose, any authorised officer of Hyundai Motor India and Malwa Auto Sales may mediate with the complainant, in order to resolve the dispute finally.”

The public prosecutor has been asked to ensure that notice of the petitions and the next hearing date is served on the complainant.

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