Carmakers May Face Hefty Fine, Maybe Even Jail For Breaking The Rules

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The newly proposed amendments to the Motor Vehicle Act might make automobile manufacturers pay a high penalty if they are caught cheating on emission norms or using components that don't meet the industrial standards.

The penalties for such could be as high as Rs 100 crore or a year in jail, or maybe both.

The bill, yet to be tabled in Lok Sabha, aims to introduce strict rules in the transport sector.

According to the present Act, any manufacturer who offend the rules by fitting components that don't comply with standards shall be punishable with a fine of up to Rs 1,000 for the first offence and Rs. 5,000 if repeated.

Government-authorized vehicle testing agents will provide the type approval certificate for each crucial component of the vehicle and the companies are asked to comply with these norms.

The road transport ministry has made provisions for mandatory recall with fine. Complaints of faulty spares or cheating emission tests can trigger such a recall.

At present, the automobile companies in India follow voluntary recall policy and there is no penalty decided for such acts.

The bill will also vouch for a penalty up to Rs. 1 lakh if anyone is caught selling spurious spare parts.

via ET Auto

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Story first published: Tuesday, August 9, 2016, 18:16 [IST]
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