Supreme Court to hear auto dealers’ plea on unsold BS IV stock today1 min read . Updated: 27 Mar 2020, 11:16 AM IST
- The unsold inventory is worth over ₹6,000 crore
- Hearing is scheduled for 3pm via video conferencing
MUMBAI: The Supreme Court will on Friday hear automobile dealers' plea on unsold inventory of BS-IV vehicles, seeking a two-month extension of the 31 March-deadline for sale and registration of such vehicles.
The unsold inventory is worth over ₹6,000 crore
The hearing is scheduled for 3pm via video conferencing today.
The Federation of Automobile Dealers Associations of India (Fada) had filed an interlocutory application with the apex court last week seeking relief as Covid-19 pandemic has hit auto dealers hard, already battling a prolonged liquidity crisis.
Also, curbs and the eventual 21-day lockdown has worsened prospects of liquidating all BS-IV stock by 31 March.
The top court has mandated that only BS-VI emission norms-compliant vehicles will be allowed for sale and registration, beginning 1 April.
Fada had filed a similar application in February that was rejected by the top court.
Auto dealers are grappling with BS-IV vehicle stocks worth ₹6,350 crore. This includes about 700,000 two-wheelers valued at ₹3,850 crore, 15,000 passenger vehicles worth ₹1,050 crore and 12,000 commercial vehicles worth ₹1,440 crore.
Nikunj Sanghi, director, international affairs at Fada, had told Mint earlier this week that the bottomlines of dealers would collapse if there were no takers for the unsold stock.
Ashish Kale, president at Fada, had said under normal market conditions, dealers could have managed to liquidate the stock but given the current situation, it is extremely difficult.
“Our lawyers will put in their best efforts to explain the unprecedented situation dealers face in liquidating the BS IV stock and hope that the court grants us relief," Kale has said in a message addressed to Fada members.
Meanwhile, the country's two biggest two-wheeler companies Hero MotoCorp Ltd (HMCL) and Honda Motorcycle & Scooter India Pvt Ltd (HMSI) have also filed interlocutory applications with the top court for relief related to BS-IV stock.
Mint learns that HMSI's plea will also be heard today.