Manufacturers May be Fined Rs.1 Lakh For Each Defective Car


Faulty Vehicle makers must be fined INR 1 Lakh for each defective Product?


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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.

Published in Times of India, Edition-Delhi Page No.24, dated 10.09.2011
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This much awaited policy will safeguard the interest of the buyers. Currently in the absence of strict Indian laws this will bring relief to the Buyers. We need to have an independent agency in India to evaluate the defects in vehicles.
 

350Z

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Re: Faulty vehicle makers face action - Transport Ministry Plans To Slap 1 Lakh Fine

This is another welcome and much needed move. I’m happy that our government is applying stringent policies in automotive sector so that some companies just cannot take the buyers for granted or test them as Guinea Pig.

Drive Safe,
350Z
 
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Re: Faulty vehicle makers face action - Transport Ministry Plans To Slap 1 Lakh Fine

Yes this indeed is a good move , after all its our hard earned money and we have every right to deserve a quality product.
 
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Re: Faulty vehicle makers face action - Transport Ministry Plans To Slap 1 Lakh Fine

Hyundai should be the first one to put into dock as all their i10's and i20's are having SERIOUS "STEERING RATTLE ISSUE".

Till date they are selling faulty cars. One of my friend from Gujrat has filed a case against hyundai. We all are awaiting result.

Well, not only one lac, but they should be told to refund entire monies.
 
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Yes even i read that article.
Its indeed a good move.
US already has National transport safety board is in place to deal with critical failure of components.

One incident was a Brake transmission shift lock interface.
BTSI is a safety mechanism intended to prevent children from accidentally setting the car in motion which was found to be faulty in Toyota cars.
The end result was there was a mass recall and all the cars were replaced with the components.
 

raj_5004

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YES & NO.

Depends on case to case basis. If its proven that the manufacturer has cheated the consumer by providing him a defective piece, then YES.
 
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well this is excellent move and will add fear companies so they dont make defective cars but what will happen when they recall thousands of cars?? will they have to pay crores in that case also??
 

AMG

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Awesome move.

1 lakh is a pittiance really.

10 lakh would be more appropriate. Then the manufacturers will panic.
 
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