SC slams Fada for exceeding the limit set on BS-IV vehicle sales

Fada has been directed to give all details of the vehicles sold to the central government

Japnam Bindra
Updated9 Jul 2020, 06:47 AM IST
Photo: Mint
Photo: Mint

The Supreme Court on Wednesday censured the Federation of Automobile Dealers Association of India (Fada) for exceeding the limit of Bharat Stage-IV (BS-IV) compliant vehicle sales as allowed by the court.

The top court asked the Centre to file data on the details of the vehicles that were uploaded on the government’s e-portal, e-Vahan, post 31 March.

The court said that it will protect only those vehicles that have been registered on the portal. Fada has been directed to give all details of the vehicles sold to the government.

BS-IV vehicles have to be registered within 10 days of sale, though those bought before 31 March can be registered later, the apex court had said in its 27 March order. The bench had given an extension of 10 days to clear the 10% of the unsold inventory after the ending of the lockdown.

“Do not take advantage by playing fraud. You have told us no sales have taken place. No vehicle could be registered without our order. No registration. You’ve sold more than allowed. You did not follow our order. We discussed this. Still today you are violating our order,” said the apex court bench headed by Justice Arun Mishra.

There seemed to be “fraud”, the court observed, and questioned senior advocate K.V. Vishwanathan, appearing for Fada, about the sale of vehicles after the order was passed by the court. “We gave you seven days. Whatever you might have sold it was sold more than the time allowed. Are you saying 10,000 vehicles sold online in one day?” the court asked.

“We will protect the registration only if the Vahan registration is correct. We will ask the government to check Vahan data. How were vehicles sold online at 30-40% off, that too after 31 march? What is this fraud?” asked the court.

Details of more than 17,000 vehicles were not uploaded on the e-Vahan portal, it observed.

The case will be next heard on 23 July.

Fada had filed an affidavit detailing the sold but unregistered BS-IV vehicles and has pleaded that the registration of these vehicles should be allowed post the 31 March deadline.

The court had on the last date of hearing sought details of the sales made after the lockdown was relaxed. It also sought details regarding the entry of sales made on the e-Vahan portal.

On 27 March, the top court had relaxed the 31 March deadline for winding up sales and registrations of BS-IV emission norm-compliant vehicles amid the countrywide lockdown put in place to contain the spread of covid-19.

The top court had passed the order while hearing the plea filed by Fada, which had sought a two-month extension of the 31 March deadline for sale and registration of such vehicles.

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First Published:9 Jul 2020, 06:47 AM IST
HomeCompaniesNewsSC slams Fada for exceeding the limit set on BS-IV vehicle sales

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