FADA has knocked SC’s doors for BS6 deadline extension. It suggests a formula which will help in smooth transition for dealers…
The Federation of Automobile Dealers Association (FADA) has knocked Supreme Court’s doors in view of the impending Bharat Stage VI ruling. It must be known that according to a regulation, no motor vehicle in India will be allowed to be sold or registered anywhere in the country from 1st April 2020.
FADA says that with the current timeline of pan-India BS6 fuel availability of 1st April, most manufacturers will shift to complete BS6 production by end of February or early March 2020. It says, there is a likelihood that many dealerships may not able to liquidate the complete stock of BS4 products.
Hence, it has requested the Supreme Court to allow registration and sale of vehicles which are billed by dealerships before 1st March 2020, over and after the 1st April 2020 deadline.
It adds that dealerships run on a gross margins of 3-5 percent on vehicles and also includes family run small scale operators. Hence, for sustainability of such entities, a relaxation would allow them peace of mind as well as continuity in business.
Else, it appears that sales may get further impacted during these months of January to March, because dealerships may limit the intake of BS4 vehicles fearing 100 percent liquidity well before the current timelines.
FADA will be represented by Senior Counsel Mr. Soli Jehangir Sorabjee (former Attorney General of India) assisted by Advocate Mr. Hrishikesh Chitaley, Advocate Ms. Pallavi Sharma (Advocate on Record) and Advocate Mr. Vijay Singh.