Carmakers May Face Penalty of Rs 100 Crore for Violation of Safety Rules

Safety of cars has always been a major concern across the globe, more so in India considering the average 1.5 lakh fatalities every year in road accidents.

By Carandbike Team


1 mins read


Published on June 6, 2016

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  • An average of 1.5 lakh fatalities in road accidents recorded every year
  • New Road Safety Bill recommends strict penalties for carmakers
  • Car owners, dealers, etc. will be held responsible too
Safety of cars has always been a major concern across the globe, more so in India considering the average 1.5 lakh fatalities every year in road accidents. Another troubling aspect of road safety is the relevant provisions in the cars retailed in the country. Case in point, 5 Indian made cars recently failed the Global NCAP crash test. That, however, may not be the case for long; the new Road Safety Bill is contemplating addition of stiffer penalties for faulty designs and absence of necessary safety features. Automakers may have to cough up a penalty of Rs 100 crore if found in violation of the new norms.

These proposed penal provisions are a part of recommendations made by a panel of state transport ministers headed by Rajasthan Transport Minister Yunoos Khan. The panel, set up by the Centre to frame stringent traffic and road safety rules, has suggested "stringent penalties to the extent of Rs 100 crore for non-compliance of automobile regulations by automobile companies and power to order compulsory recall within stipulated time frame".

Interestingly, the panel also recognises that the onus of safety of vehicles doesn't lie with just the manufacturers. Hence, the new Road Safety Bill may also stipulate a fine of up to Rs 5,000 on individuals for use of unauthorised components and other manufacturing or maintenance-related violations. Examples of such violations would be in fog-lights, pressure horns, extra-lights, roof-top carriers, and metallic protectors.

Other people that may also be held accountable for such offences include dealers and vehicle bodybuilders, who will likely face a fine of up to Rs. 1 lakh per vehicle. Other than that, the bill recommends a fine of up to Rs. 1 lakh for "selling non-approved critical safety components for vehicles" for component dealers.

The panel has contemplated steeper penalties for several other offences, such as driving by minors, crossing speed limits, drunk driving, talking over phone while driving, and jumping traffic lights. One must note in the case of juvenile drivers, the panel has advised that the owner of the vehicle or the driver's guardian face tough penalties of up to three years in jail and a fine of up to Rs 20,000, while their vehicle registration certificate may also be cancelled.

The panel's final recommendations are expected to be enforced this month.

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