Supreme Court sense ‘fraud’ in BS-IV vehicles sales figures3 min read

By- Anshul Singh

An appeal was filed by automotive industries in Supreme Court regarding the sale of BS-IV vehicle after the lockdown was lifted in India. Supreme Court on 27th March 2020 responded to the appeal by allowing the automotive dealers to sell BS-IV Vehicles for 10 days across India.

Apex court laid the guidelines for the automotive dealers that only 10% of unsold BS-IV in the inventory can be put up for sale.

On June 15, the apex court had made it clear that no sale and registration of BS4 vehicles would be permitted in the country and pulled up the automobile dealers association for violating its earlier order that had given some limited relaxation.

Based on the report submitted by PTI, A bench headed by Justice Arun Mishra has slammed Federation of Automobile Dealers’ Association (FADA) for committing a fraud. According to the report, more than 17,000 BS-IV vehicles information have not been updated on the government Vahan portal. The Court asked the automobile dealers association to furnish details of vehicles sold by them to the government. The bench will conduct a hearing on the matter on July 23.

ON July 23rd Bench Headed by justice Arun Mishra said that they will ask the central government to check the e-Vahan data and will allow registration of only those BS-IV vehicles whose details were uploaded on the portal before 31st March 2020. The bench has also asked the government to submit the information of the vehicle which that were uploaded on the e-portal after 31st March 2020. The bench also said “do not take advantage of this court by playing fraud” 

As per an affidavit filed in the top court regarding its 27th March decision more than 2,25,000 vehicles were waiting for registration as on March 31st and this has exceeded the amount which was fixed by the court.

 The court only allowed the registration of 1.05 lakh two-wheelers, 2,250 passenger cars and 2,000 commercial car. The court also said that any registration vehicle sold beyond the permitted 10% limit cannot be made without the permission of the court.


Federation of automobile dealers association (FADA) on its part argued that many of the vehicles were sold before the march 31st deadline. As prescribed by the government. FADA has submitted that as of March 31, member dealers have sold 94,000 BS4 vehicles, while non-member dealers have sold over 1.3 lakh BS4 vehicles. SC had allowed a prescribed a limit of 1.09 lakh.

In the last hearing which was held on 16th July 2020, the SC had lashed out at FADA for flouting the prescribed conditions for the sale of BS4 inventory after the March 31 deadline. Justice Arun Mishra led bench of the SC had pulled up FADA for exceeding the quota of BS4 vehicle sales that had been allowed. Supreme court has also asked FADA to give data of the vehicles sold to the government.

FADA argued that the lockdown had translated into over 15,000 unsold BS4 commercial vehicles and over 12,000 unsold BS4 passenger vehicles. The number of unsold BS4 two-wheelers was pegged at over 7 lakhs by FADA. FADA had pleaded before the SC that unsold inventory accounted for over Rs 7,000 crore.

Supreme Court says that March 27 directives violated. Details of BS4 vehicles sold after March 31 that have not been uploaded on the government’s e-Vahan portal will not be registered. Automobile dealers associations say less than 10 per cent of unsold BS4 inventory were sold within 10 days of the lockdown lifting. the apex court noted that more than 17,000 vehicles sold were not registered in the Vahan portal. However, the final hearing is et on 13th August and the supreme court will final decision in this matter on 13th August 2020.