SC bans sale, registration of BS-III vehicles from April 1

In a blow to automobile firms, the Supreme Court today banned sale and registration of vehicles, which are not BS-IV compliant, in India from April 1 when the new emission norms come into force.
Observing that health of the people is "far, far more important than the commercial interests of the manufacturers", the apex court said that the makers of such vehicles have declined to take "sufficient proactive steps" despite being fully aware that the firms would be required to manufacture only BS-IV compliant vehicles from April 1, 2017.
The court also prohibited registration of vehicles, which do not meet Bharat Stage-IV emission standards, from April 1 except on a proof that such a vehicle was sold on or before March 31.

"We direct that on and from April 1, 2017, such vehicles that are not BS-IV compliant shall not be sold in India by any manufacturer or dealer, that is to say that such vehicles whether two-wheeler, three-wheeler, four-wheeler or commercial vehicles will not be sold in India by any manufacturer or dealer on and from April 1, 2017," a bench comprising Justices Madan B Lokur and Deepak Gupta said.
"All the vehicle registering authorities under the Motor Vehicles Act, 1988 are prohibited for registering such vehicles on and from April 1, 2017 that do not meet BS-IV emission standards, except on proof that such a vehicle has already been sold on or before March 31, 2017," the bench said, adding detailed reasons for this order would be given in due course.

The Society of Indian Automobile Manufacturers (SIAM) had earlier informed the apex court that companies were holding stock of around 8.24 lakh vehicles, which are not BS-IV compliant, including 96,000 commercial vehicles, over six lakh two-wheelers and around 40,000 three-wheelers.

Reacting to the court's order banning BS-III vehicles, SIAM termed it as "frustrating", saying the existing law allows sale of these vehicles and this fact was ignored.
"We all have to respect the Supreme Court verdict," SIAM President Vinod Dasari said.
Noting that as per a government notification, sale of BS III vehicle was allowed after April 1, he said, "Now suddenly those BS III vehicles are banned. I find it quite frustrating that something like this happens."

Green bodies lauded the court's decision, terming it as an acknowledgement of the public health crisis and a step in right direction towards fighting air pollution.
Environment experts said the transition was "critical" as the movement from BS-III to BS-IV could lead to substantial reduction in particulate matter emission.
In its five-page order, the bench accepted the submissions of the amicus curiae (an impartial adviser to a court) that permitting such vehicles to be sold or registered on or after April 1 would constitute a health hazard to the citizens by adding to the air pollution levels which were already quite alarming.

"On balance, in our opinion, the submission of the amicus deserves to be accepted keeping in mind the potential health hazard of such vehicles being introduced on the road affecting millions of our people in the country," it said.
"The number of such vehicles may be small compared to the overall number of vehicles in the country but the health of the people is far, far more important than the commercial interests of the manufacturers or the loss that they are likely to suffer in respect of the so-called small number of such vehicles," it said.
The bench also said, "Manufacturers of such vehicles were fully aware that eventually from April 1, 2017 they would be required to manufacture only BS-IV compliant vehicles but for reasons that are not clear, they chose to sit back and declined to take sufficient proactive steps."

The court was dealing with the issue relating to the sale and registration of BS-III compliant vehicles which have been lying in stock with manufacturers and dealers, from April 1.
It also noted that the "seminal issue" in these applications was the sale and registration and therefore, the commercial interests of manufacturers and dealers of such vehicles which do not meet the BS-IV emission standards as on April 1, 2017 would take primacy over the health hazard due to increased air pollution.
The manufacturers had argued that sale and registration of vehicles, which are not BS-IV compliant, should not be prohibited from April 1 and that they would not manufacture any vehicle not complying with BS-IV emission norms from April 1.

The firms had argued that they may be given a reasonable time to dispose of the existing stock of such vehicles.
Solicitor General Ranjit Kumar, appearing for the Centre, had argued that requisite quality fuel for BS-IV compliant vehicles would be available all over the country from April 1 and refineries had incurred an expenditure of about Rs 30,000 crore for producing the requisite fuel for BS-IV vehicles.
The amicus curiae had said that the manufacturers were fully aware, way back in 2010, that all vehicles would have to be converted to BS-IV fuel from April 1, 2017 and they had more than enough time to stop the production of BS-III compliant vehicles and switch over to BS-IV standard.

The court was also informed during the arguments that manufacturer like Maruti Sazuki had completely switched over to manufacture of BS-IV compliant vehicles a few years ago and makers of BS-III vehicles had not made a complete switch even though they had the technology and technical know-how to do so.