The Ministry of Road Transport and Highways said that if the automobile company had to compulsorily recall a vehicle, it may have to pay a fine of up to Rs 1 crore. This system will be applicable from 1st April this year.
The government has said that if the companies did not do a voluntary recall and the government was forced to give this order, then the companies could be fined between Rs 10 lakh and Rs 1 crore depending on the number and type of vehicles to be recalled.
The new rule will apply to vehicles under seven years old. Along with this, it will be in cases of the same flaws in which the Ministry will declare the potential risk to road safety. According to the rules, in case of recall of more than six lakh two-wheelers and more than one lakh four-wheelers, the companies will have to pay a fine of up to Rs 1 crore.