FADA Approaches Supreme Court Seeking Extension Of Sale, Registration Of BS-IV Vehicles Till May-End 
A customer talks on his mobile phone as he sits on an Eicher Motors Ltd. Royal Enfield Thunderbird 500 motorcycle on display at the company’s Royal Enfield flagship dealership in Gurgaon, India. (Photographer: Prashanth Vishwanathan/Bloomberg)

FADA Approaches Supreme Court Seeking Extension Of Sale, Registration Of BS-IV Vehicles Till May-End 

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The Federation of Automobile Dealers Associations on Tuesday said it has filed an application with the Supreme Court seeking extension of sale and registration of BS-IV vehicles till May 31, 2020 -- an extension of two months from March-end deadline to clear the stock of such models.

The automobile dealers' body on behalf of its members has once again approached the Supreme Court, and has filed an interlocutory application along with an application seeking modification in the writ petition dated Oct. 24, 2018.

In the petition, in the matter of MC Mehta versus Union of India and others, the apex court had directed that no motor vehicle conforming to emission standard BS-IV shall be sold or registered in the entire country with effect from April 1, 2020.

We have submitted an application with the Supreme Court for extension of registration process of BS-IV vehicles till May 31, 2020. We are now seeking an urgent hearing on the matter.
Ashish Harsharaj Kale, President, FADA To PTI

The two-wheeler BS-IV inventory at dealerships across the country stood at around 8.35 lakh units valued at around Rs 4,600 crore, he added.

"The situation in the passenger vehicle and commercial vehicle segments is much better as compared to two-wheelers," Kale said.

FADA had filed an application earlier as well, which was rejected by the apex court on Feb. 14 this year.

"Post our initial application, necessitated due to huge unsold BS-IV inventory and slowing sales, getting rejected by the apex court on Feb. 14, there has been a drastic change in circumstances in conducting business as usual," Kale said.

The spread of coronavirus has led to a drastic drop in sales and customer walk-ins have reduced to a trickle, he added.

“As caution sets in due to fear of spreading of the virus, counter sales has fallen by 60-70 per cent across auto dealerships in these past few days,” Kale said.

The situation has worsened in the past three-four days with partial lock-down situation in many towns and cities and few district magistrates have started issuing notices of closure of shops and establishments including auto dealerships to stop the spread of virus, Kale said.

"Owing to situations which are beyond our control and the fact that many of our members may face dealership closures if left 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 May 31, 2020," he said.

FADA hopes to get an urgent hearing in the Supreme Court owing to the criticality of the issue and the deadline of March 31, he added.

Also read: Two-Wheeler Dealers Worried Unsold BS-IV Inventory Will Turn Into Scrap

On Monday, Society of Indian Automobile Manufacturers had said that it has filed an application in the Supreme Court seeking sale and registration of BS-IV vehicles till March 31, 2020.

The auto industry body said that some state governments have recently issued circulars directing that no application for registration of BS-IV vehicles would be accepted on or after certain dates, which are much ahead of March 31, 2020.

"The cut-off dates range from Feb. 29, 2020, to March 25, 2020, from state to state, though BS-VI emission compliance is mandated from April 1, 2020," he had said.

These circulars have put customers, dealers and vehicle manufacturers in severe discomfort as each of them are racing against time to exhaust the BS-IV stocks which are with the dealers, SIAM President Rajan Wadhera had said.

In the current circumstances, any unsold BS-IV vehicle would end up as scrap after March 31, 2020. From April 1, only BS-VI compliant vehicles will be registered in the country.

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