Automobile dealers' body FADA moves SC seeking relief in sale of BS-IV vehicles after 1 April deadline

New Delhi: Automobile dealers’ body FADA on Wednesday said it has moved the Supreme Court seeking sale and registry of unsold BS-IV vehicles beyond 1 April, 2020. The Federation of Automobile Dealers Associations (FADA) said it should be allowed to offload inventory purchased before 1 March, 2020 which remain unsold by the month-end. Last year, the Supreme Court had ordered that no Bharat Stage IV vehicle shall be sold in the country with effect from 1 April, 2020. The Bharat Stage VI (BS-VI) emission norms would come into force from 1 April next year. The FADA said that it on behalf of its members has filed an impleadment application in the Supreme Court along with an application seeking a modification of the court’s order of last year. [caption id=“attachment_901843” align=“alignleft” width=“380”] Representational image. Reuters.[/caption] “We have appealed to the Honourable 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 1 March, 2020, which remains unsold by 31 March, beyond the current deadline of 1 April,2020,” FADA President Ashish Harsharaj Kale said in a statement. With the current timeline of pan-India BS-VI fuel availability of 1 April, most manufacturers will shift to 100 percent BS-VI vehicle production only by February-end or first week of March 2020, he said. “Looking at this timeline and the current fluctuating demand situation, despite putting in the best of efforts, there is a possibility that many of our members will not be able to ensure 100 per cent liquidation of BS-IV inventory,” Kale said. He added that FADA members range from large dealership groups to family-run small scale entities operating in the remotest corners of the country operating at 3-5 percent gross margins. “Despite their best efforts to sell, if dealers are left with any inventory of BS-IV on 1 April, 2020, many of them will face financial hardships which could even threaten the existence of their business,” Kale said. Last year, a three-judge bench headed by Justice Madan B Lokur made it clear that only BS-VI compliant vehicles shall be sold in the country from 1 April, 2020. The bench said the need of the hour was to move to a cleaner fuel. The BS-IV norms have been enforced across the country since April 2017.