Can A Dealer Sell BS4 Cars After April 1? – 12 Key Questions Answered

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The uncertainty surrounding the BSIV stocks still exists beyond the April 2020 deadline and to clear the air here are 12 key questions answered

The switch to BSVI emission standards has caused complete chaos among buyers as the uncertainty over the BSIV vehicles has even resulted in many prospective customers waiting till the deadline of April 1, 2020 to purchase their new vehicles. The dealers are also facing the heat as they will have to clear out the existing BSIV stocks.

Most of the automobile manufacturers are working closely with the dealers to help them sell out the BSIV vehicles by maintaining lean inventories before the eventual transition. While carmakers have ramped up the production of BSVI compliant vehicles and expanded the range, dealers are working day-in-day-out to clear out the stocks well ahead of the deadline.

Here are the important twelve questions answered by Tamilnadu Automobile Dealers Association (TADA) and sent to their dealers:   

1) Can a dealer sell and register BS4 vehicles on or after 01.04-2020?

No. As per the above notification of the MoRTH and the Suprecourt judgement, no manufacturer/dealer can sell or register the vehicle on or after 01-04-2020. It clearly indicates that all the BS4 vehicles has to undergo and complete the registration process within 31-03-2020.

2) What will happen if a dealer has unsold stock with him?

Since the last date of sale and registration is 31-03-2020, we cannot sell these vehicles. The dealer in this situation has only two options viz a) He can return the vehicle to the Manufacturer or b) he has to dismantle the vehicle and scrap or he can use the spare parts of the said vehicle. Moreover these vehicles will be blocked for billing both by the Manufacturers in their software and in Vahan by the Government.


3) What is the last option if any BS4 Vehicle is left out unsold and the manufacturer doesn’t accept for buyback?

If a dealer has stock of vehicles, he has only one option i.e to register the vehicles in his company name/ Staffs name and sell the same as second-hand vehicle at a later stage.

4) Can we buy some extra time as we bought for BS3 vehicles by approaching the Court of Law?

No. We cannot buy anymore time. In the case of BS3, the notification of MoRTH was given on the Sale date and now clear notification is given on both Sales & Registration date which is 31-03-2020. In case of any deviation, the associations normally approach the court of law in the procedural approach. First the High Court is being approached and if no favourable verdict then the Supreme Court can be approached. Since the Supreme Court had already given judgement that no more extension of time must be given beyond 31-03-2020, the extension of time is completely ruledout.

5) What are the steps that a dealer must do now to come out of BS4 issues?

The Dealers are requested to monitor the list of vehicles sold and not registered. In a warfoot basis all the vehicles which are unregistered must be registered on or before 28-02-2020. If the pending registration report is analysed, many issues will come to limelight such as vehicles which are sold long back have not been registered.

6) How can a dealer identify the vehicles which are not registered for which online payments have been done?

Login to the Vahan portal->Reports->Dealer Registration Pendency Report. In the said report a dealer can find the list of vehicles unregistered for which the payment had been done. For those vehicles for which the online payment had not been done will not be available in this report.

7) How can a dealer completely come out of BS4 registration issue?

If the dealer starts the delivery of the vehicle only after registration, he can completely come out of such problems. For vehicles which the financier payments are not received, the dealer can obtain the Delivery Order(DO), Release Order(RO) and register the vehicles before receipt of payment from the financier. Please ensure that the DO/RO is signed by the persons who signs the Form20 by which we can fix the responsibility on the financier if there are any discrepancy in receipt of financier payment.

8) Does the financier have the right to ask for the amount financed for a vehicle which is not registered?

Definitely the financier has every right to refund/ deny the payments made/ to be made for unregistered vehicles. Only if the vehicle is registered he can seize/ sell the vehicles as second hand. Already most of the financiers have started sending mails in this regard.

9) Can a customer ask for refund of money paid if any vehicle is unregistered?

It is the duty of a dealer to register and then deliver the vehicle. If any customer approaches us/ court, it is for sure that the judgement will only be in favour of the customer only, even if there is any delay on the customer part. Even if a dealer has got undertaking from the customer the same will be treated as null and void. It is the sole
responsibility of the dealer to register the vehicles.

10) Can a temporarily registered vehicle be taken for permanent registration on or after 01-04-2020?

Presently no clarification had been received in this regard and hence permanent registration for all vehicles including body building or commercial vehicles stands as 31-03-2020. In fact the extra time given by MoRTH for commercial vehicles had been declined by the Supreme Courts in its verdict by dictating the last date of registration
for BS4 Vehicles as 31-03-2020 only. Hence all the dealers are requested not to take any chance and are requested to complete their permanent registration by the stipulated time.

11) What is the order of MoRTH with regard to BS4?

Ministry of Road Transport & Highways-Sale of BS-VI Norm Vehicles-Posted On: 09 DEC 2019 2:25PM by PIB Delhi “The Government, vide G.S.R. 889(E), dated 16.09.2016 has mandated BS-VI mass emission standard for vehicles throughout the country from April 1, 2020 to curb pollution across the country. 

The Ministry of Road Transport and Highways, vide GSR 178 (E) dated 20th February, 2018 had notified that new motor vehicles conforming to Emission Standard Bharat Stage-IV manufactured before the 1st April, 2020 shall not be registered after the 30th June, 2020 and the new motor vehicles of categories M and N conforming to Emission Standard Bharat Stage-IV manufactured before the 1st April, 2020 and sold in the form of drive away chassis shall not be registered after the 30th September, 2020.

However, the Hon’ble Supreme Court vide its order dated 24th October, 2018 has directed that no new motor vehicle conforming to the emission standard Bharat Stage-IV shall be sold or registered in the entire country with effect from 01.04.2020.”

This information was given by the Union Minister for Road Transport and Highways Shri Nitin Gadkari in a written reply in Rajya Sabha today.

12) What is the order of the Honourable Supreme Court?

The Court order is sent an attachment separately as the same is of 20 pages. All the above clarifications are done to be the best of our knowledge and belief. The dealers can refer their own channels for further clarification is any. In case of any help the dealers are requested to contact any of our office bearers who name and mobile numbers are provided for your ready reference.

If you have read through the twelve questions and answers, you could clearly find out that the dealers are being emphasised to sell their BSIV vehicles and register them well ahead of the March 31, 2020 deadline. The dealers could end up facing problems by not knowing what to do with their BSIV stocks because nothing much can be done with them productively, except selling them as used cars at a later stage.