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GM India To Be Fined INR 3.4 Crore Over Tavera Recall
Seems General Motors India's troubles over the fudging of Tavera emission details have just started as the Indian Transport Ministry initiates action against the U.S carmaker. TOI reports that GM India could be fined at least INR 3.4 crores. This is going by Rs 100 for the first offence and Rs 300 for subsequent offences.
Production of the Tavera in India began in 2005 and since then it has sold at least 114,000 units, all of which now have fudged certificates owing to falsified engine specifications. Each such Tavera unit sold is being considered as an offence by the ministry.
But the fine could only be the start as there is a very real possibility of the ministry starting criminal proceedings against the company under the Central Motor Vehicle Act.
A three member panel will be set up to probe the matter. The panel's task will be to find those directly responsible and also to prepare a report detailing how to prevent a similar problem from occurring in the future. The ministry will direct Gujarat and Maharashtra state governments to look into the matter further and initiate action on the guilty.
Meanwhile, several executive heads have rolled over at GM, both in India and in the U.S and more could be fired over the matter. This is owing to the seriousness of the matter, which has not just brought down sales in India, but has also severely dented GM's image.
As for the future of the Tavera, GM India has already submitted the new Tavera BS-III engine for testing to ARAI. New and clean Tavera models with the new engines are expected hit showrooms in a couple of months time.
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