Who Will Pay? Arbitrary SC Decision Costs Automotive Industry Rs 4,000 Cr

An automotive industry captain has said that the ban imposed by the Supreme Court (SC) on the registration of diesel vehicles over 2000 cc engine capacity in the National Capital Region (NCR) cost the industry nearly Rs 4,000 crore in eight months.

The Supreme Court had issued the diktat last December (2015) citing the cause of excessive pollution by these vehicles. Earlier this month SC allowed registrations, but also imposed a levy equal to one percent of the ex-showroom price for 2000 cc diesel vehicles.

The apex court had said that:

Vinod K Dasari, President of the Society of Indian Automobile Manufacturers (Siam), who came out with the Rs 4,000 crore loss figure at a seminar yesterday questioned the populist targeting of the automotive industry. According to him, the industry had followed all the laws, and yet the courts arbitrarily banned the registration of a certain segment of vehicles.

Back in December, when the apex court ruling had come out, Swarajya had questioned the manner in which the SC had encroached the executive’s domain:

The new uncertainty that the SC had introduced has caused a loss of Rs 4,000 crore to the industry. Isn’t this an example of retrospective policy change and, therefore, grossly unfair? The court could have simply nudged the government to change its policy on certain vehicle segments or introduce a new cess. Instead, it chose to wade into the executive domain and make policy on its own. The cost, if the reported numbers are true, is for all to see.