Supreme Court Allows Conditional Sale Of BS-IV Vehicles Beyond March 31 Deadline

The Supreme Court allowed auto dealers to sell 10 percent of BS-IV inventory beyond the March 31 deadline, providing relief when the pandemic worsened sales of the industry that’s already grappling with a prolonged slowdown.

The top court, which is hearing only urgent cases during the 21-day lockdown amid the coronavirus outbreak, directed that no vehicles will be sold in the Delhi National Capital Region. Also, sales have to take place only during the first 10 days after the lockdown ends, Justice Arun Mishra and Justice Deepak Gupta, who heard the case through video conferencing, said.

The Federation of Automobile Dealers Association of India had approached the apex court seeking extension of sale and registration of Bharat Stage-IV vehicles till May 31, in view of the days lost due to the lockdown. FADA informed the top court that the unsold inventory includes 15,000 passenger cars, 12,000 commercial vehicles and around 7 lakh two-wheelers.

Auto sales have already been declining since Diwali in 2018, first hit by an increased upfront insurance cost and then a broader economic slowdown. The virus outbreak only added to their woes.

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

The Supreme Court in its earlier judgment had mandated that sale of all BS-IV vehicles would be barred from April 1.