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File Photo: Bloomberg
File Photo: Bloomberg

Draft norms on vehicle recall suggest fine up to 1 crore for defects

  • The government will not impose a penalty if the manufacturer or importer identifies the defect and voluntarily recalls the automobile or automobile part

NEW DELHI: An auto manufacturer may have to cough up as much as 1 crore as penalty for producing faulty or defective vehicles, according to the draft rules prepared by the road transport and higways ministry.

Recall of more than 6 lakh two-wheelers, 1 lakh plus four-wheelers and more than 3 lakh three-wheelers and quadricycles will attract penalty up to 1 crore. On recall of 1-3,000 two-wheeler, a manufacturer will have to pay up to 10 lakh.

The government will not impose a penalty if the manufacturer or importer identifies the defect and voluntarily recalls the automobile or automobile part, the draft rules said. The recall will also be limited to vehicles which are less than seven years old from the date of manufacturing or import.

As of now, manufacturers voluntarily recall vehicles that do not meet minimum safety standards, or those found to have any defect that may affect the buyer, to replace parts or fix the problem. However, under the Motor Vehicles Act that was amended last year, the government can order a recall if a vehicle defect hurts the environment, car owners, or road users.

According to the draft rules, the manufacturer or importer must conduct investigations, and take samples of vehicles and run safety checks. They should also maintain a register of recall related complaints and keep dealers informed of such monitoring. In addition, they should take appropriate action necessary to avoid recall-related risks, including recalling the vehicle from the market, as well as effectively warning consumers regarding the same.

The ministry also gave details of the procedure for recall, procedure to detail investigating officer, investigation procedure in a time-bound manner--6 months--role of testing agencies and their accreditation.

According to the Act, if a vehicle having a type approval certificate is recalled, the government can cancel the accreditation and registration of the testing agency that certified the vehicle.

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