BS4 vehicle sales: SC pulls up automobile associations for disregarding its order

Earlier in the month of March 2020, the top court had allowed automobile dealers to sell only 10% of the unsold BS-IV vehicles over 10 days after the lockdown. A bench led by Justice Arun Mishra said that its March 27 order giving relaxations has been misused. More details here.

The Supreme Court on Monday pulled up automobile associations, including the Federation of Automobile Dealers Associations (FADA), for flouting its earlier order that granted some relaxations for sale and registration of BS-IV vehicles. Earlier in March, the top court had allowed automobile dealers to sell 10% of the unsold BS-IV vehicles over 10 days after the lockdown. A bench led by Justice Arun Mishra said that its March 27 order giving relaxations has been misused. While it had allowed sale and registration of 1.05 lakh BS-IV vehicles, it now seems 2.55 lakh vehicles have been sold, the judges said. The apex court asked FADA to give details of sale and registration by Friday. It also directed the ministry of road & transport to submit details of BS-IV vehicles sold and registered after the March 27 order.

Justice Mishra reprimanded FADA for not filing the affidavit. “Where is the affidavit? What will happen to the 2,25,000 vehicles that have already been sold? Do you think this is a game? It had to be filed by May; it’s already end of June now,” he said, adding, “You do not know me. In this case, I’ll take such strict action that your client will remember.” On March 27, it had relaxed the March 31 deadline for the sale of BS-IV vehicles in India and gave an extension of 10 days to clear 10% of unsold inventory post the end of the lockdown period due to Covid-19.
Allowing only 10% of unsold BS-IV inventory to be sold within 10 days after the lockdown ended on April 14, Justice Mishra had, however, barred the sale of BS-IV vehicles in Delhi-NCR and the sold vehicles were allowed to be registered within 10 days of sale.

The apex court observed that it can’t keep extending the deadline in the name of the coronavirus. “No point extending time for BS IV vehicles, burdening environment further… Let’s learn to sacrifice, do something for country’s environment, have sympathy,” Justice Mishra had said, adding that they understand the psychology of businesses and dealers. Senior counsel KV Vishwanathan, appearing for FADA, had sought extension of the deadline for the sale and registration of BS-IV-compliant vehicles till May-end. “Kindly extend registration day to be post 15 days after lockdown is lifted,” he argued.

FADA, the apex dealers’ body, had in February sought modification of the Supreme Court’s October 24, 2018 order that prohibited sale and registration of BS-IV compliant vehicles from April 1, 2020. The retailers had said that they might fail to liquidate Bharat Stage-IV vehicles’ inventory before the new emission standards took effect on April 1, 2020, due to the impact of Covid-19. They had sought a two-month extension to sell BS-IV vehicles in India once the lockdown was lifted.

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