Japan's transport ministry on Tuesday ordered major used car dealer Bigmotor Co. to halt operations at a quarter of its vehicle maintenance outlets after finding that the firm had charged excessive repair and inspection fees.
The Ministry of Land, Infrastructure, Transport and Tourism urged the 34 shops located in 24 prefectures to suspend vehicle maintenance operations for a period of between 10 and 90 days.
Twelve of the shops had their licenses to carry out private vehicle inspections revoked, while 11 were instructed to halt car check services for a period ranging from 20 days to 180 days.
The company, in a statement, vowed to take the ministry's action seriously and make efforts to prevent a similar issue from happening again.
The ministry first unveiled the punitive action against the company's 34 outlets on Oct. 13. The penalties were finalized after Bigmotor officials did not show up to make statements at hearings with the ministry's regional bureaus on Friday.
The violations of the road transport vehicle law came to light following on-site inspections by the ministry in July that were conducted based on a report by outside lawyers. According to the report, the 34 shops were involved in improper maintenance.
The report has found instances where employees intentionally damaged vehicles to inflate repair fees such as by using screwdrivers and golf balls.
The law prohibits companies from charging for repairs not requested by customers or not carried out.
The ministry is continuing to investigate Bigmotor's remaining 101 vehicle maintenance shops, with the probe set to continue through next year.
Bigmotor is also under investigation by the Financial Services Agency, along with casualty insurer Sompo Japan Insurance Inc., over allegations the dealer charged excessive repair fees and lodged fraudulent insurance claims.
In another blow, police are also investigating the company on suspicion of property destruction after roadside trees near its dealership outlets were found to have withered unnaturally.
Related coverage:
Japan ministry to order Bigmotor to halt 34 vehicle maintenance shops
Transport ministry to penalize used car dealer Bigmotor over fraud
Financial watchdog searches Bigmotor, Sompo Japan over fraud case
