Though quite common, automotive recalls leave a big impact on both the consumer and the manufacturer. This is why stringent steps to regulate automotive recalls were taken in 2019. So here’s everything you need to know about the why and how of automotive recalls.
The Background
As we mentioned in our previous article on automotive recalls, before 2019, India had no specific legal provision dealing with automotive recalls in India. The OEMs then undertook recalls per the ‘Voluntary Code on Vehicle Recall’ introduced by the Society of Indian Automobile Manufacturers and their internal procedure to correct safety defects in affected cars.
The New Legal Regime
In August 2019, when the Amended Motor Vehicles Act, 1988 and the Consumer Protection Act, 2019, was enacted, special focus was given to procedures relating to automotive recalls in India.
Changes Brought By the Motor Vehicles (Amendment) Act 2019 (MV Act)
With regard to automotive recalls, the amended MV Act inserted Section 110A in the principal act to establish a procedure to govern the recalling of motor vehicles.
According to section 110A, the Central Government may, through an order, direct an OEM to recall automobiles of particular types or their variants/sub-types if there is a defect that might cause harm to the driver/occupants of the vehicle or the environment or to other road users.
Such a defect may be reported to the Central Government by a percentage of owners as specified, a testing agency, or any other source. The section also empowers the central government to order a recall of all automobiles irrespective of their type if any particular component of such automobiles has any above-mentioned defects. The central government can also authorize any officer to investigate any matter about recalling automobiles.
Duties of OEM whose vehicles have been recalled
Any OEM whose vehicles have been recalled shall:
- Reimburse the consumers for the entire cost of the motor vehicle, subject to any hire-purchase or lease-hypothecation agreement; or
- Replace the defective motor vehicle with another motor vehicle of similar or better specifications or repair it; and
- Pay such fines and other dues as may be prescribed by the Central Government.
Disclosure Requirements
If any OEM notices a defect in the automobile manufactured by it, then it shall inform the Central Government concerning the defect discovered and initiate a voluntary recall proceeding. By doing so, the OEM shall not be liable to pay any fine.
You Can Make A Complaint As Well
As per the rules relating to the recall of automobiles in India, notified by the Ministry of Road Transport and Highways, other than the designated officer who can initiate a vehicle recall on its own, even consumers are empowered to make a complaint regarding defects in motor vehicles.
Per the rules, an owner of an automobile, a testing agency or any other person as notified can make an application to the Designated Officer (Joint Secretary, MVL, Ministry of Road Transport & Highways) urging that a particular automobile should be designated as a ‘defective motor vehicle’ and be recalled.
This application has to be made via the Vehicle Recall Portal, set up by the Ministry of Road Transport & Highways. If you feel that your vehicle is subject to any defect of the category mentioned above, then you can make an application for the same at https://vahan.parivahan.gov.in/vehiclerecall/vahan/welcome.xhtml
Changes Brought by the Consumer Protection Act, 2019
Besides the MV Act, even the Consumer Protection Act 2019 brought in a specific provision regarding automotive recalls. In this regard, the act has empowered the Central Consumer Protection Authority (CCPA) to order a recall of goods (Automobiles).
Section 20 of the act states that if the CCPA is satisfied on the bases of an investigation so conducted that there is enough evidence to establish a violation of consumer rights or any unfair trade practice, it may pass an order directing:
- Recall of goods considered dangerous, hazardous or unsafe
- Reimbursement of the price of goods recalled; and
- Discontinuation of practices which are unfair and prejudicial to the interests of consumers.
The Bottom Line
Whether the Motor Vehicle Amendment Act 2019 or the Consumer Protection Act 2019, it is clear that Indian law has taken a progressive approach to safeguard the interests of all consumers. This was all about the new regime that governs automotive recall in India. Stay pinned to the GoMechanic Blog for everything automotive.
