FADA and BS IV logos, Supreme Court
FADA and BS IV logos, Supreme Court
Litigation News

Supreme Court pulls up Automobile Dealers Association for violating order on selling BS IV vehicles

Debayan Roy

The Supreme Court today slammed the Federation of Automobile Dealers Association (FADA) for violating the top court order on the relaxation of sale and registration of Bharat Stage-IV vehicles.

The Bench of Justices Arun Mishra, S Abdul Nazeer, and Indira Banerjee also noted that while the Court had allowed sale and registration of 1.05 lakh BS-IV vehicles, it now seems 2.55 lakh vehicles were sold.

The Court today ordered the Ministry of Road Transport and Highways (MoRTH) to submit details of BS-IV vehicles sold and registered after the Supreme Court's March 27 order.

The Top Court has also asked Senior Advocate KV Viswanathan who represented FADA to submit details of sale and registration thus made by June 19.

On March 27, the Supreme Court had permitted vehicle retailers to sell 10% of unsold Bharat Stage-IV compliant inventory within 10 days of the lockdown getting over, except in the National Capital Region.

The details of the vehicles sold had to be furnished by the FADA, which had approached the Supreme Court seeking more time to sell the vehicles.

The Court had then said that only the vehicles, details of which would be furnished, will be allowed to get registered.

Senior Advocate KV Viswanathan today informed the Court that there were 1,05,000 two-wheelers, 2,250 passenger cars, and 2,000 commercial vehicles which were sold but not registered.

However, the Court was miffed for not filing an affidavit pursuant to the last March 27 order.

It is startling to note that even after lifting of the lockdown on May 3, when the sales have taken place and as per our order, no registration could have been made without informing this Court as to how many vehicles have been sold throughout India. It appears that the order is being misused for the reasons best known to the respondents and they have not filed affidavit in compliance of the order passed by this Court.

Reads the order

"Do you think this is a game ? It (affidavit) had to be filed by May... it’s already end of June now. You do not know me... In this case, I will take such strict action that your client will remember"
Justice Arun Mishra said

Automobile dealers have around Rs 6,400 crore worth of BS-IV compliant vehicles with them. These include 7,00,000 two-wheelers, 15,000 passenger vehicles and 12,000 commercial vehicles.

In March this year, FADA had moved the Court seeking an extension of 30 days to the deadline, even as operations at dealerships had come to a standstill due to the nationwide lockdown.

Justice Mishra on Monday ordered that details   of   the   vehicles   which   were sold   upto March 31   and   on   which   date   they   were   sold,   be   also   specified, in an affidavit.

The court has now asked for specific  details   of   two­ wheelers,   cars   and   other commercial   vehicles   and   the   sales   made   after   lifting   of   the lockdown   under   10%   throughout   India   by   the   members   of FADA as well as non members.

[READ ORDER]

MC Mehta Order.pdf
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