All you need to know about the Supreme Court’s decision on unsold BS-IV inventory

FADA, in its extension request for unsold BS-IV inventory, said that counter sales have fallen by 60 to 70 percent due to coronavirus.
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The Honourable Supreme Court of India has extended the time for the sale of unsold inventory of BS-IV vehicles. However, the apex court has placed several restrictions on the sale of these vehicles but has placed several restrictions.

Here’s all the fine print you need to know about the Supreme Court’s decision.

As per Federation of Automobile Dealers Associations of India’s (FADA) petition filed earlier this month, the number of unsold BS-IV vehicles in India amount to seven lakh two-wheelers, 15,000 passenger cars and 12,000 commercial vehicles.

Also, 1,05,000 two-wheelers, 2,250 passenger cars and 2000 commercial vehicles are there, which have been sold but not registered across India due to the lockdown.



The Supreme Court has given FADA time till April 30, 2020, to register the sold vehicles at their respective RTOs. However, the governing body of automobile dealerships will have to furnish details of the purchasers, on affidavit, of the said vehicles through email, by next Friday.

FADA will also have to furnish details of registration to the Supreme Court.

For the unsold inventory, to compensate for the six days business lost before the March 31 deadline due to the lockdown ordered in the country, the Supreme Court has granted 10 days grace applicable when the lockdown reopens on April 14, 2020.

However, dealers in Delhi-NCR will not be allowed to sell any BS-IV vehicles.

The judges added, “With respect to unsold vehicles as the manufacturer should have been ready because of deadline set for BS-VI compliant vehicles, there is no justification to extend the time which was fixed long time ago. This is not something new which has occurred, it would be further injurious and further burden on human health to be caused by pollution of BS-IV vehicles when BS-VI vehicles are supposed to be produced by the manufacturers well in advance considering the deadline of March 31, 2020.”

No further extension will be given if the permitted 10 percent of the BS-IV inventory remains unsold after the grace period.

FADA will also have to furnish engine and chassis numbers of the sold vehicles within seven days of sale. Registration of these vehicles will only be allowed once the affidavit has been filed.

(Edited by Saheli Sen Gupta)

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