The Federation of Automobile Dealers Associations (FADA) on behalf of its members filed an impleadment application in the Supreme Court of India along with an application seeking modification in the apex court’s order in Writ Petition No. 13029 of 1985 in the matter of M. C. Mehta versus Union of India and others, dated October 24, 2018 whereby it has been directed that “no motor vehicle conforming to emission standard Bharat Stage-IV shall be sold or registered in the entire country with effect from April 1, 2020.”
FADA President Ashish Harsharaj Kale said: “With the current timeline of all-India BS VI fuel availability of April 1, 2020, most manufacturers will shift to 100% BS VI vehicle production only by end February or the first week of March.”
“Looking at this timeline of BS VI production and the current fluctuating demand situation, despite putting in the best of efforts, there is a possibility that many of our members are not able to ensure 100% liquidation of BS IV inventory purchased by them in the course of business before the deadline of April 1, 2020 fixed by the Supreme Court of India,” he added.
FADA members range from large dealership groups to family-managed small-scale dealerships operating in the remotest corners of the country, operating on 3-5% gross margins of the cost of the vehicles.
“Despite their best efforts to sell, if dealers are left with any inventory of BS IV on April 1, 2020, many of them will face financial hardships which could even threaten the existence of their business,” Kale pointed out. “Hence, we have appealed to the Apex Court to protect the inventory and in turn the dealership survival of our members and allow us to sell and register inventory purchased before March 1, 2020, which remains unsold by March 31, 2020 beyond the current deadline of April 1, 2020,” he added.
FADA will be represented by the former Attorney General of India and Senior Counsel Soli Jehangir Sorabjee assisted by advocates Hrishikesh Chitaley, Pallavi Sharma and Vijay Singh.