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Faulty vehicle makers face action, Transport Ministry Plans To Slap 1 Lakh Fine On Each Defective Product

New Delhi: The road transport and highways ministry is planning to formulate a stringent policy that will hold manufacturers accountable for making faulty vehicles. An expert committee appointed by the ministry has recommended slapping Rs 1 lakh fine on manufacturers for each faulty vehicle or a three-month jail term or both.

The ministry is working on amendments to Motor Vehicle Act. The ministry is under pressure amid a growing demand to formulate a policy on mandatory product recall like other developed nations.

Sources said new recommendations stipulate that in case a consumer finds manufacturing faults with engine or any other parts, s/he would be able to lodge a complaint with the state transport authority (STA). Consequently, experts would investigate the case and suggest action. Increasing complaints from consumers and rise in instances of recalls by manufacturers have called for new rules. The ministry will hold a meeting with stakeholders to discuss these issues next week. Last year, the government had proposed a penalty of Rs 10 lakh on the manufacturers for each faulty vehicle and introduced a bill to set up National Road Safety and Traffic Management Board. However, the standing committee sent the bill back.

In India, companies like Maruti and Honda, have recalled particular batches of cars after detecting faults in some of their parts.

“The defective vehicles having defects are usually recalled under the product recall mechanism in other countries by the national road safety authority in case the manufacturers failed to voluntarily recall the defective vehicles. This mechanism has been created by the authorities to protect consumer interest,” said S P Singh of Indian Foundation of Transport Research and Training.

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madhav krishna

More power to the consumer. GREAT

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Samarth 619

That means if someone's bike has hard gear shifts or overheating engine due to bad parts, he can complain it and Manufacturer would be fined??

Fortunately, Bajaj would be getting the all-new KTM based Pulsars to market soon...

pulsater

I think unless and until the fault could lead to serious or fatal accidents (ex: tata nano catching fire or breaking of front suspension assembly in previous gen pulsars while riding), common mechanical issues would not be taken as seriously enough to fine the manufacturer. It's a good move nevertheless.

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aargee

They're only in the planning phase!!! But the word defective word is quite ambigious; what defines the defective? Parts? Does that include the bolt as well? On a certain case with A*, it was a bolt. But the manufacturer could be held responsible OR they could point to the vendor who made it. So unless the policy is clearly defined (which is quite difficult in our country), this will become another law on paper.

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pixantz

it's about time!!

j4zb4

So with the infernal Nanos we can expect tata to go bankrupt soon...?

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stefanm

That's great news, I request to be dug out of my grave or given a rebirth to witness this, did they state which millennium it will be enforced in?
Maybe I could tie the launch of the project in with my overdue tax rebate and witness two miracles in one decade!

Tata motors are going to be so screwed!

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princesirohi

it is a good move.

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vvijkumar

wow!!! what a news .It should not be limited to vehicles but should be implemented on each and every item produced in India.