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

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.