“You cannot play games", India's top court tells the country's car dealers

• On March 27, 2020, the top court had allowed for the sale of 1.05 lakh vehicles for 10 days after car sales began in May.
• However, at a hearing today led by Justice Arun Mishra, the court said that according to reports a total of 2.25 lakh vehicles were sold.
• The Indian government had earlier set a deadline of April 2020 for the transition to BSVI vehicles – those that comply with the latest emission norms.

The Supreme Court has slammed the Federation of Automobile Dealers Associations of India for flouting its earlier order for sale of BSIV vehicles.

On March 27, 2020, with the deadline for BSIV vehicles fast approaching and auto dealers across the country being shut due to the coronavirus lockdown, the top court had allowed for the sale of 1.05 lakh vehicles for 10 more days after the lockdown was lifted for the sector in May.

However, at a hearing today led by Justice Arun Mishra, the court said that according to reports a total of 2.25 lakh vehicles were sold. “You cannot play games with the Supreme Court? Why didn't you file a second affidavit by May. It's the end of June now,” said Justice Mishra during the hearing to FADA.

FADA had approached the court to extend the registration day to 15 more days, until May-end.

Now, the Supreme Court has sought the details of sale and registration by FADA by Friday. The Ministry of Road Transport will also submit details of BS-IV vehicles sold and registered after court's order in March.

The Indian government had set a deadline for April for the transition to BSVI vehicles – those that comply with the latest emission norms – and the unsold inventory of BSIV vehicles would have been rendered useless after April 1

This was also one of the reasons for the auto slowdown in 2019 as consumers refrained from buying the older models. However in August 2019, Finance Minister Nirmala Sitharaman had said that BS-IV vehicles purchased until March 30, 2020 will be allowed to run on the roads for the duration of the registration.The vehicles were also eligible for 30% depreciation, double that of the rate of 15% applicable then.

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