Automobile companies fine Rs 1 crore penalty mandatory recal

Automobile companies fine Rs 1 crore penalty mandatory recall orders manufacturing defects govt


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Automobile majors will have to shell out up to Rs 1 crore as penalty in case of mandatory recall orders by the government for defects in manufacturing from April 1, 2021, Ministry of Road Transport and Highways said on Wednesday. The ministry has issued rules for mandatory recall of defective vehicles by manufacturers.
"It is notified that, where minimum number of complaints for particular category of vehicle against total sales of model is received on vehicle recall portal, mandatory recall is initiated," the Ministry said.
The notification mentions fines ranging from Rs 10 lakh to Rs 1 crore on the basis of number of vehicles and types of vehicles.

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