BS4 Vehicles Sold After March 31 Deadline Cannot Be Registered Says Supreme Court

The Supreme Court of India has announced that it will recall its previous order on sales and registration of BS4 vehicle in the country. On March 27, 2020, it stated that BS4 vehicles were allowed for a period of 10 days due to the ongoing Covid-19 pandemic and the resulting nation-wide lockdown.

BS4 Vehicles Sold After March 31 Deadline Cannot Be Registered Says Supreme Court

According to the recent reports, the apex court has accused the (FADA) Federation of Automobile Dealers' Association of India for committing "fraud". The new ruling states that all vehicle registered after the deadline is considered invalid.

BS4 Vehicles Sold After March 31 Deadline Cannot Be Registered Says Supreme Court

However, there will be an exception made to the vehicles registered after the deadline. According to the new ruling, the SC clarified that it will protect only those vehicles which have been registered with the VAHAN portal.

BS4 Vehicles Sold After March 31 Deadline Cannot Be Registered Says Supreme Court

The court also has asked FADA to provide the data for BS4 vehicle sales, which will be used to evaluate the number of registrations received from the government portal. The apex court has declared that over 17,000 vehicles sold were not registered with the VAHAN portal.

BS4 Vehicles Sold After March 31 Deadline Cannot Be Registered Says Supreme Court

Apart from that, the court reported that the number provided for BS4 vehicle sales by the dealer federation does not add up. The governing body warned the federation for taking advantage of the rules, as the number reports that it has sold more vehicles than it had allowed. The limit of sales and registration of BS4 vehicles after the deadline was set at 1.09 lakh.

BS4 Vehicles Sold After March 31 Deadline Cannot Be Registered Says Supreme Court

The decision made on March 27 stated that dealers are allowed to sell 10 per cent unsold BS4 inventory. In addition to this, the court had directed the sale of BS4 inventory would be allowed for only 10 days after the nation-wide lockdown.

BS4 Vehicles Sold After March 31 Deadline Cannot Be Registered Says Supreme Court

In its defence, FADA stated that it was seeking permission to register vehicles that were sold before the deadline in the Indian market. According to the reports submitted by FADA, the dealers who are members of the entity have sold 94,000 BS4 vehicles. While non-member dealers have sold over 1.3 lakh BS4 vehicles after the. This results in number going over the allowed limit.

BS4 Vehicles Sold After March 31 Deadline Cannot Be Registered Says Supreme Court

Thoughts About The BS4 Vehicles Sold After March 31 Deadline Cannot Be Registered Says Supreme Court

The shift from BS4 vehicles to BS6 standards is among the biggest change in the history of Indian auto industry. Adding to the current troubles, the ongoing Covid-19 pandemic has not made it easy for dealers to sell their reaming stock of BS4 vehicles. Whether customers who have already taken delivery of BS4 vehicles after the deadline will be affected by the decision remains to be seen.

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Read more on: #auto news
Article Published On: Thursday, July 9, 2020, 10:00 [IST]
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