The Honorable Supreme Court of Friday gave marginal relief to the auto industry wherein the apex court allowed the sale of 10 percent unsold BS4 inventory after the March 31 deadline. As the country is currently facing lockdown till April 15, the auto sector is one of the most affected industries that has been seeing downfall over a year now. With a lot of BS4 inventory left with the dealers, the Federation of Automobile Dealers Associations (FADA) approached the Supreme Court (SC) seeking some extension in the deadline. EMI Relief on Car Loans: Hyundai and Its Luxury Brand Genesis Launch Job Loss Protection Plan Amid COVID-19 Crisis
As a reminder, the government previously had given a deadline of March 31 wherein no BS4 vehicles will be sold or registered in the country post-March 31 deadline. However, seeing these unprecedented situations in the country, the apex body has allowed the sale of only 10 percent of unsold BS4 vehicles beyond the Mar 31 deadline.
The court has brought marginal relief to the dealers by allowing the sale of 10 percent unsold BS4 stock. The court also directed the dealers that this sale would take place within 10 days when the lockdown is lifted in the country.
Additionally, it also added that no BS4 vehicles will be sold in the Delhi-NCR region. It also directed that all the BS4 vehicles sold will be required to carry out the registration procedures within 10 days after the sale. Moreover, the court also highlighted that the BS4 vehicles sold before the lockdown can be registered once the restrictions are lifted.
FADA went ahead with an urgent appeal asking the Supreme Court to relax the deadline by 30 days after the lockdown. It highlighted that these uncertain circumstances forced the dealers from selling existing inventory. The auto body also argued that the nationwide lockdown has resulted in more than 15,000 unsold BS4 commercial vehicles and over 12,000 units of unsold BS4 passenger vehicles in the country. However, the volume of unsold BS4 two-wheelers was over 7 lakh units.