In a judgement that will have far-reaching
implications for many automotive retailers in India, the Supreme Court has
allowed a conditional extension for the BS4 vehicle sales deadline.
The Supreme Court was hearing a last-ditch plea
from the Federation of Automobile Dealers Association (FADA) to extend the
registration timeframe for BS4 vehicles beyond the original March 31, 2020
deadline, bearing in mind the impact of the nationwide lockdown enforced due to
the novel coronavirus (COVID-19) outbreak.
As per Supreme Court order, automotive retailers
can only sell 10 per cent of unsold BS-IV inventory for 10 days post the
prevailing lockdown. The Supreme Court noted that “there was no justification
to extend the time” beyond the original March 31, 2020, deadline but took
cognizance of the loss of sales due to the lockdown. Allowing automotive
retailers to sell 10 percent of BS-IV inventory should make good the six days
of sales lost in the March lockdown, the Court ruled. The unsold BS-IV
inventory with dealers across the country comprises 7,00,000 two-wheelers,
15,000 passenger vehicles and 12,000 commercial vehicles.
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