Industry

FADA files application in Supreme Court to allow sale of BS III vehicles after March 31

by Sumantra B Barooah Mar 23, 2017

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National automobile dealership body Federation of Automobile Dealers Association (FADA) has filed an application at the Supreme Court urging the apex court to allow the sale of non-BS IV vehicles in India after March 31 too.

FADA has filed an intervention application at the Supreme Court in this regard. According to a notification from the Ministry of Road Transport & Highways, non-BS IV vehicles will not be allowed to be produced in the country. However, there's an ongoing case in the Supreme Court over whether the new rule should be applicable for registration and sale of vehicles also. The next hearing of the case is on Friday, March 24.

"Dealers are unintended victims of the legal battle, but definitely the worst affected," says Nikunj Sanghi, director – International Affairs & Global Relations, FADA. There are around 20,000 automobile sales outlets in India.

FADA, which supports the argument for taking strong steps to counter deteriorating air quality, fears that a judgement in favour of stopping registration and sale of non-BS IV vehicles from April 1 will adversely impact the retail business of the automobile industry and will lead to major losses for players in the business, including loss of jobs. Apparently, the automotive retail and service industry employs more than twice the number of people employed by automobile manufacturers.

It is learnt that FADA members will also stop placing orders for, or accepting, non-BS IV vehicles from manufacturers.

Also read: Indian auto industry firm on BS IV April 1, 2017 deadline

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