Auto majors to be fined up to Rs 1 crore on mandatory recall orders for defective vehicles: Govt

Automobile majors will have to shell out up to Rs 1 crore as penalty in case of mandatory recall orders by the government for defects in manufacturing from April 1, 2021, Ministry of Road Transport and Highways said. The ministry has issued rules for mandatory recall of defective vehicles by manufacturers. The notification mentions fines ranging from Rs 10 lakh to Rs 1 crore on the basis of number of vehicles and types of vehicles.