The Federation of Automobile Dealers Associations (FADA), on behalf of its members, has approached the Supreme Court with an interlocutory application and an application seeking modification in its earlier order, which put a ban on selling or registering BS-IV vehicles across the country.
In October 2018, the apex court directed that no motor vehicle conforming to emission standard Bharat Stage-IV shall be sold or registered in the entire country with effect from April 1, 2020. Due to the situations which are beyond the control and the fact that many of the members may face dealership closures if leftover with unsold BS-IV stocks, FADA has once again approached the apex body with a request for permission of sale and registration of BS-IV vehicles till 31st May’20 and hopes to get an urgent hearing in the Supreme Court owing to the criticality of the issue and the deadline of March 31, approaching fast. The unsold inventory is worth over ₹7,000 crores, FADA has said. They also informed that the unsold inventory includes 15,000 passenger cars; 12,000 commercial vehicles and around 7 lakh two-wheelers.
The coronavirus impact is severe in Maharashtra, Karnataka, Odisha and Kerala, which have seen a 40-50 per cent drop in footfalls, enquiries and deliveries. Its impact is moderate in Gujarat, West Bengal, NCR and Punjab, while it is nominal in Rajasthan, Chhattisgarh and Bihar.
The apex court, which is hearing only urgent cases during the 21 days lockdown amid the coronavirus outbreak, with the bench comprising Justice Arun Mishra and Justice Deepak Gupta, allowed the sale of 10% of the unsold stock of BS-IV vehicles within 10 days of the end of the lockdown, except in Delhi and the National Capital Region. The bench also held that BS-IV vehicles bought have to be registered within 10 days of sale but those bought before 31 March can be registered later.
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