A complaint by 100 or more people regarding defects in a particular model of a car will prompt the Vehicle Regulation and Road Safety Authority of India to order a recall of the vehicle.

Defect would mean electrical, mechanical or manufacturing faults.

This is part of the draft Road Transport and Safety Bill 2014 placed on the website of the Ministry of Road Transport & Highways for public comment. The Bill is likely to be introduced in the next session of Parliament. Currently, there is no Government policy and auto companies recall the vehicles on a voluntary basis based on manufacturing defects.

However, with the increasing number of recalls, it has been decided to initiate a concrete step in this regard.

Provisions of the draft Bill prescribe three conditions for recall of a particular model. First, when a defect may cause harm to drivers, passengers or other road users.

Second, when 100 or more people complain to the authority about the defect, and thirdly, when the said model does not comply with the provisions and standards prescribed under law.

Once a recall has been ordered, the manufacturer may be asked to compensate the buyer for the full value of the vehicle. Alternatively, it will have to repair or even replace the defective model with another vehicle with much better specification and which is fully complaint under the law. The company could also be asked to pay a fine.

Manufacturing defect One of the provisions of the draft says that punishment for offences relating to manufacturing include ₹5 lakh per vehicle or imprisonment for a term of three months or both. Payment of fine may be differentiated on the basis of the vehicle size.

The manufacturer has to report to the authority as soon as it comes to know of the defect in a particular model and will have to initiate a recall immediately. If the company informs the authority immediately, it will not have to pay a fine.

The draft Bill also talks about compensation to be paid by the manufacturer, if there is an accident due to defective vehicles.

The liability of the manufacturer will extend to any damage caused to the person or property of third party. Once the law is notified, the Government will make detailed regulations.

Various countries have mandatory recall policies. For example, the Japan Government, on its own, does the random test on vehicles and imposes penalty up to $3 million for manufacturing defects.

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