homeauto NewsSupreme Court senses ‘fraud’ in BS IV vehicles’ sales figures

Supreme Court senses ‘fraud’ in BS-IV vehicles’ sales figures

A Supreme Court bench, headed by Justice Arun Mishra, on Friday observed that something “fraudulent” may have taken place, with respect to the number of BS4 vehicles sold before March 31, as claimed by the auto dealerships’ association. Fears expressed by the SC were on account of data submitted by the government.

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By Ashmit Kumar  Jul 31, 2020 6:47:04 PM IST (Published)

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Supreme Court senses ‘fraud’ in BS-IV vehicles’ sales figures
A Supreme Court bench, headed by Justice Arun Mishra, on Friday observed that something “fraudulent” may have taken place, with respect to the number of BS-IV vehicles sold before March 31, as claimed by the auto dealerships’ association. Fears expressed by the court were on account of data submitted by the government.

As per the government’s affidavit, auto dealers have sold over 8 times the sales numbers they have shown to the apex court.
Government’s affidavit in SC revealed that while Federation of Automobile Dealers Associations (FADA) claimed sales of 1.34 lakh BS-IV units between March 12 and March 31, the actual sales figure was over 11 lakh BS-IV units, for the same period.
Government data also revealed that in three days -- March 29, 30 and 31 -- alone, saw sales of 2.5 lakh BS-IV vehicles.
Citing possible “fraud”, the SC has stayed all future registrations of the BS-IV Vehicles, until further directions from the top court.
SC was hearing a plea by FADA. It had moved the apex court in March seeking an extension of the March 31 deadline for sale of these vehicles. On March 27, SC allowed marginal relief to auto dealers and auto companies, permitting sales of 10 percent unsold BS-IV inventory.
The court had directed the sale of BS-IV inventory would be allowed for only 10 days post lifting of the lockdown.
On June 16, however, FADA reported sales of over 2.25 lakh BS-IV units. The court had took exception to this figure and noted that it was significantly higher than the 10 percent quota that had been allowed. FADA had argued that the sale of 2.25 lakh units had taken place, not after the lockdown, but prior to the March 31 deadline.
In the subsequent hearing on July 9, the SC recalled the order allowing the 10 day extension, while warning that FADA should not try to take advantage of the top court by “playing fraud”. The SC had questioned FADA on how so many vehicles had been sold prior to March 31, with the lockdown in force from March 24. The SC will now hear the case on August 13.

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