MoRTH’s new vehicle recall policy to attract fine up to Rs 1 crore

The Ministry of Road Transport & Highways (MoRTH) has given its go-ahead for the new Vehicle Recall policy, which makes compulsory recall of vehicles if they meet certain criteria mentioned in the policy. The decision comes into effect from April 1, 2021.

At present, the OEMs recall vehicles as and when a problem or defect is identified. But now the policy states that if a certain number/percentage of vehicles is found to have the same defect/issue, the OEM will need to compulsorily recall the vehicles.

The decision for vehicle recall is based on two key factors – the number of complaints received for a defect on a vehicle and the annual sales of that particular vehicle. MoRTH has outlined different thresholds for each vehicle categories (table below) to ensure that defective products are recalled by the OEMs in due time.

The new rules define defects as a fault in the vehicle/component/software that poses or may pose undue risk to road safety or environment. The policy is applicable to vehicles that are less than 7 years old.