Automobile: Auto cos to be fined up to Rs 1 cr on mandatory

Automobile: Auto cos to be fined up to Rs 1 cr on mandatory recall orders for defective vehicles: Govt


Synopsis
The rules for testing of vehicles and mandatory recall under the Central Motor Vehicles Act provides for penalty in case of manufacturers or importers fail to undertake voluntary recall.
Automakers will have to mandatorily recall a vehicle if a certain number of vehicle owners file a complaint against it on a vehicle recall website to be set up by the government. The road transport and highways ministry on Wednesday notified rules for mandatory recall of defective vehicles by the auto manufacturers to strengthen the cause of consumer safety and reduce road accidents in the country. The rules will come into effect on April 1.

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