FADA Moves Supreme Court Seeking BS-VI Deadline Extension Till May 31

Automobile sellers’ physique FADA on Tuesday stated it has filed an utility with the Supreme Court in search of an extension of sale and registration of BS-IV autos until May 31, 2020 — an extension of two months from March-end deadline to clear the inventory of such fashions. The Federation of Automobile Dealers Associations (FADA) on behalf of its members has as soon as once more approached the Supreme Court and has filed an interlocutory utility together with an utility in search of modification in writ petition dated October 24, 2018.

In the petition, within the matter of M C Mehta versus Union of India and others, the apex court docket had directed that no motorcar conforming to emission normal BS-IV shall be offered or registered in the whole nation with impact from April 1, 2020. “We have submitted an application with the Supreme Court for extension of the registration process of BS-IV vehicles till May 31, 2020. We are now seeking an urgent hearing on the matter,” FADA President Ashish Harsharaj Kale instructed PTI.

The two-wheeler BS-IV stock at dealerships throughout the nation stood at round 8.35 lakh items valued at round Rs 4,600 crore, he added. “The situation in the passenger vehicle and commercial vehicle segments is much better as compared to two-wheelers,” Kale stated. FADA had filed an utility earlier as effectively which was rejected by the apex court docket on February 14 this 12 months.

“Post our initial application, necessitated due to huge unsold BS-IV inventory and slowing sales, getting rejected by the apex court on February 14, 2020, there has been a drastic change in circumstances in conducting business as usual,” Kale stated. The unfold of coronavirus has led to a drastic drop in gross sales and buyer walk-ins have decreased to a trickle, he added. “As caution sets in due to fear of spreading of the virus, counter sales have fallen by 60-70 per cent across auto dealerships in these past few days,” Kale stated.

The scenario has worsened previously three-four days with partial lockdown scenario in lots of cities and cities and few district magistrates have began issuing notices of the closure of outlets and institutions together with auto dealerships to cease the unfold of the virus, Kale stated.

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“Owing to situations which are beyond our control and the fact that many of our members may face dealership closures if left with unsold BS-IV stocks, FADA has once again approached the apex body with a request for permission of sale and registration of BS-IV vehicles till May 31, 2020,” he stated.

It hopes to get an pressing listening to within the Supreme Court owing to the criticality of the problem and the deadline of March 31, he added. On Monday, auto trade physique SIAM had stated that it has filed an utility within the Supreme Court in search of sale and registration of BS-IV autos until March 31, 2020.

Society of Indian Automobile Manufacturers (SIAM) stated that some state governments have not too long ago issued circulars directing that no utility for registration of BS-IV autos can be accepted on or after sure dates, that are a lot forward of March 31, 2020. “The cut-off dates range from February 29, 2020, to March 25, 2020, from state to state, though BS-VI emission compliance is mandated from April 1, 2020,” he had stated.

These circulars have put clients, sellers and car producers in extreme discomfort as every of them is racing towards time to exhaust the BS-IV shares that are with the sellers, SIAM President Rajan Wadhera had stated. In the present circumstances, any unsold BS-IV car would find yourself as scrap after March 31, 2020. From April 1, solely BS-VI compliant autos will probably be registered within the nation. PTI MSS ANS ANS

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This post was last modified on March 18, 2020 11:57 pm

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