Report-Automobile Companies get a relief from Indian Government

The Government has cut down on the penalty proposed on auto makers and manufacturers, rolling out defective vehicles and selling them by concealing the information from the Authorities and the market. Finalized in the fourth draft sent by the Road Transport Safety bill, declares an enforced penalty of INR 50,000 for manufacturing and INR 1 lakh for selling faulty vehicles. The initially proposed amount was INR 5lakhs for the two defaults. One proposal that remains unchanged is that the defaulters could also be jailed for up to 3 months. The website of the ministry of road transport and highways have also displayed a copy of this draft.

 

 

The bill has constructed another body in order to check on the fines and the defaulters and take further actions- “The National Road Safety and Vehicle Regulation Authority of India”. The Central government would take the lead setting up the body once the draft takes effect. According to reports, king brands like Maruti Suzuki, Mahindra, Ford Motors have called back thousands of their faulty vehicles back, with problems reported like the faulty door latches and airbags. This bill would make this process more formal and crisp.

 

In accordance to the bill, once the manufacturer becomes aware of the defect and the default, immediately informs the body and also recalls the vehicle, the brand would not be liable for the fine. But on the other hand, the brand would have to compensate the buyer, who is innocent in this deal with a full value option, replace or repair the fault. Although hearing upon the new law, the car companies did not look much content, they still need further clarity on the kind of defect that the company is considering on, weather to recall the vehicle or not.