F A D A Journal - December 2020

Federation of Automobile Dealers Associations | fada.in | Estb: 1964 December 2020 | Vol. 20 | Issue: IX | Pages : 60 | Rs. 50

4, President’s Message

Happy New Year 2021!

f a d a 6, IndiaEconomics
Journal Inflation Eases with Diminishing Growth |
IIP Contracts More Than Anticipated

14, Demystifying GST

Insights from the Automobile Retail Industry New Game Changers in GST Input
Tax Credit !

33, Automotive Technology 17, FADA in News

TURBOCHARGING - The Indian FADA State Chapters Initiate Dialogue with
Automotive Industry Now! State Machinery

36, Leadership 30, Business Achievers

What Should Business Leaders Delta Corp: A Pocket Full of Aces
Learn From 2020?
Jaydev Mody has become India’s casino czar by institutionalising Indians’ love
for gambling. He now wants to future-proof brand Deltin by going
international and growing in the online gaming space.

Federation of Automobile
Dealers Associations (F A D A)

is the apex body of Automobile Retail Industry in
India.

F A D A has been representing over 15,000
automobile dealers having over 26,500 dealerships
including 16 associations of Automobile Dealers at
the Regional, State and City levels accounting for
90% of market share in India since 1964. Together,
we employ over ~5 million people in the country
(including Direct and Indirect employment) at
dealerships and service centres.

contents Federation of Automobile Dealers Associations | fada.in | Estb: 1964 December 2020 | Vol. 20 | Issue: IX | Pages : 60 | Rs. 50

December 2020 | Vol. 20 | Issue: IX f a d a 4, President’sMessage
Happy New Year 2021!
4 President’s Message 6, India Economics
Journal Inflation Eases with Diminishing Growth |
Happy New Year 2021! IIP Contracts More Than Anticipated

6 India Economics 14, Demystifying GST

Infla on Eases with Diminishing Growth| IIP Contracts More Than An cipated Insights from the Automobile Retail Industry New Game Changers in GST Input
Tax Credit !
8 Auto Retail Registration
33, Automotive Technology 17, FADA in News
FADA Releases December’20 Vehicle Registra on Data
TURBOCHARGING - The Indian FADA State Chapters Initiate Dialogue with
12 FADA Research Automotive Industry Now! State Machinery

Rising Safety Standards in Auto Industry 36, Leadership 30, Business Achievers

14 Demystifying GST Delta Corp: A Pocket Full of Aces

New Game Changers in GST Input Tax Credit ! What Should Business Leaders
Learn From 2020?
17 FADA News
Printed and Published by Saharsh Damani on behalf of Federa on of
- FADA State Chapters Ini ate Dialogue with State Machinery Automobile Dealers Associa ons, 805, Surya Kiran, 19, K G Marg, New
- FADA ~ FICCI Tie Grows Stronger! Delhi-110 001.

21 Govt Noti ication Printed at Sita Fine Arts P Ltd, A-16, Naraina Indl Area - II, New Delhi

22 Consumer Protection Act Editor: Saharsh Damani

An Introduc on to the Consumer Protec on Act, 2019 Advertisers’ Index 60
59
25 Insight Kuttukaran Group 07
Provincial Group 45
How Charging in Buildings Can Power Up the Electric Vehicle Industry - McKinsey & Co. Shriram Transport Finance
United Group of Institutions
30 Business Achievers
Editor, F A D A Journal and CEO, FADA
Delta Corp: A Pocket Full of Aces
Mr Saharsh Damani
33 Automotive Technology T +91-11-6630 4852, 2332 0093, 2332 0095
E [email protected]
Turbocharging - The Indian Automo ve Industry Now
Of ice Bearers Vice President
36 Leadership Mr Manish Raj Singhania
President E [email protected]
What Should Business Leaders Learn From 2020? Mr Vinkesh Gulati
E [email protected] Treasurer
38 Opinion Mr Sai Giridhar
Secretary E [email protected]
- 5 Defining Moments in the CV industry in 2020: Leaptrucks Mr C S Vigneshwar
- Electric Two-Wheelers Witness Tepid Growth Despite Govt’s Subsidy, Near-Term Outlook E [email protected]

Largely Remains Unchanged: ICRA Survey

42 Perspective

Driving Resilience and Profitability through Sustainability

46 Consumer Case Studies

50 Membership

51 Competition Law Updates

52 Industry Track

December 2020: Posi vism Prevails in the Auto Retails

55 Chart of the Month

56 Statistics

Vehicle Sales, Y-o-Y Growth & Market Share - December 2020

President’s Message

Happy New Year 2021!

vinkesh Gulati, president - FADA Dear Members and Dealer Friends,

4 F A D A Journal December 2020 | fada.in “The darkest night is o en the bridge to the brightest
tomorrow” - Johnathan Lockwood Huie

On behalf of FADA, I want to wish you a very Happy New
Year and thank you for your con nued support and
par cipa on! Like the quote above, it goes without saying
that we are all very glad to put 2020 behind us and are
looking forward to a healthier and more prosperous 2021.

As men oned earlier, 2021 for us will be a year of Strength
and Revival and I’m looking forward to working with you all
– as individuals, organisa ons and experts. Together we can
work on the best solu ons to the challenges which we as
Dealership Community are facing with and establish Auto
Retail Industry as a great indomitable force to be reckoned
with. Towards this, I urge all to work towards bringing more
dealerships under FADA umbrella and help your Federa on
reach stronger with each passing day.

As you all know, fixa on of HSRP and 3rd Registra on Mark
on exis ng vehicles have become mandatory for all
vehicles. In this regard, the customers and dealers in Delhi
NCR have been facing huge challenges in the
implementa on largely due to communica on gap,
technical glitches and constraints in supply of the plates and
registra on mark. To amicably resolve the ma er in general
and for Delhi NCR region in par cular, FADA met SIAM
Service heads and Delhi Transport Minister and senior
bureaucrats. Following this, FADA has wri en to SIAM & to
all OEM’s appraising them not only about dealer concerns
and steps to be taken for seamless and me bound
implementa on but have also requested them to work with
the transport department to ensure the implementa on of
the affixa on of plates and registra on marks on exis ng
vehicles happen in a phased manner.

To make the roads safe, stringent measures have been
incorporated in the new CMVR act. To create awareness and
sensi se the issue, MoRTH conducts Road Safety week
every year and FADA has always been suppor ng MoRTH in
this by ini a ng programs on importance of wearing seat
belt, crea ng awareness on safety protocols to be followed

President’s Message

on the road to be safe and drive safely, distribu on of launching the 2ⁿ part of Grow with Google series: A
safety s ckers etc. This year the Road Safety program comprehensive program via a series of 30 video sessions
being conducted by MoRTH is for a month w.e.f. on how to best leverage digital to drive profitability by the
January 18, 2021 to February 17, 2021. I request you to front line staff of dealerships. I will request all of you to
support this ini a ve in your own regions by crea ng encourage them to enrol for the same.
awareness about road safety in your communi es so
that many lives can be saved and tragedies averted. During the course of the year FADA for the first me will
Please take the photographs of the ini a ves taken up be conduc ng Dealer Sa sfac on Study to understand
at your end and mail it back to us for highligh ng the the level of dealer sa sfac on on different parameters.
same on all our media pla orms The details for the Study are at present being worked
out and shall be shared in form of survey once finalised.
The Webinar on The New Consumer Protec on Law, For the Study to be really effec ve, it must be as broad
conducted by Mr Anand Shankar Jha, Advocate on based as possible and for this I seek your support for
Records, Supreme Court of India was conducted on your par cipa on and also encouraging your co-
January 9, 2021. Many dealers from all over India dealers to par cipate in the same.
par cipated and gained from the Session. The Webinar
was very meaningful as it helped us to understand: If all falls in line and the virus spread is contained, we
hope to have our physical 57 AGM & 3 Auto Retail
a. The Significant Changes in Law rela ng to Conclave in September this year. We are also planning
Consumer Protec on Act to come out with 2ⁿ edi on of FADA Digest during the
Conclave.
b. The poten al risk and liability in a case of Product
Liability In February 2022, we shall be having our 12 Auto
Summit and FADA Awards. Details for the same is also
c. How to address a legal ac on for misleading being worked upon. Once finalised, we will open
adver sement, unfair trade prac ce and “service nomina ons so that dealers can send in their
deficiency nomina ons on basis of their best fit categories.

d. The steps to handle Inves ga ons before Central I thank you in advance for all the efforts each one of you
Consumer Protec on Authority (CCPA) will be pu ng forth in strengthening my hands by
coopera ng and suppor ng me by ac vely
e. The 7 Best Prac ces to avoid penalty in consumer par cipa ng in all the ini a ves taken up by your
li ga ons and Federa on during the course of the year. Before I end,
let me inform you that FICCI has invited me to be a part
f. The Do’s & Don’ts for auto dealers in a consumer of their Na onal Execu ve Commi ee for the year
li ga ons. 2021. This is happening for the first me that FADA
President has received such an invite. This is an
The session was followed by Q&A which helped achievement for all of us and our teams. With this FADA
answering concerns expressed by our dealer friends. and FICCI es will grow stronger and I am sure that we
Those who were unable to a end and gain from the will be able to leverage this and make our voice heard
session or would once again like to refresh themselves louder and clearer!
about the learning’s, for them, FADA would be bringing
out the FAQs to help understand the nuances of the Wishing you All Once Again A Very Happy & Safe New
new Law. Year 2021!

As I had indicated earlier, a er the successful 3-series Vinkesh Gula
Webinar: Grow with Google, for Dealer Principals on President FADA
digitaliza on and its benefits in growth and management
of dealership business which was conducted in fada.in | December 2020 F A D A Journal 5
associa on with Google & ASDC, we will soon be

India Economics

Inflation Eases with Diminishing Growth| IIP Contracts
More Than Anticipated

Core infla on remains s cky also started the downtrend broad-based contrac on trailers (+0.9%) were the
journey. However, the core across categories, except leaders. Consumer goods
CPI for the month of December infla on con nues to be s cky electricity (+3.5%) and contracted by 70 bps, with
was at 4.6%, falling within RBI’s at 5.7% due to higher price of infrastructure and durables and non-durables
range for the first me in a year, services. Rural infla on has construc on goods (+0.7%). both recording a contrac on,
except for the month of March. reversed the recent trajectory Manufacturing, which indica ng the fading away of
This reduc on was due to and has eased to 4.1% while contributes 77% to the IIP, fes ve demand. The eight core
so ening of food prices, which urban infla on is now higher at contracted by 1.7%. Of the 23 data had contracted by 2.5% in
grew by 3.4% in December on a 5.2%. manufacturing groups, 10 November while the PMI
base of 14.19% growth last recorded a growth - food manufacturing at 56.3 has
year. IIP contracts more than products (+8%), Basic remained in expansionary
an cipated Metals(+1.3%), Motor zone. Year to date IIP is down
While the base effect was Vehicles, trailers and semi- by 15.3%.
favourable, momentum has IIP came in at -1.9% owing to a

Infla on Inches Up Further

Trends in IIP and its Components

Source: CEIC & FADA Research

6 F A D A Journal December 2020 | fada.in



Auto Retail Registration

FADA Releases December’20 Vehicle Registration Data

Ÿ December registra ons for the first me in FY20-21 witnesses’ posi ve growth of 11% (YoY) largely due to fes val spill over
demand and pre-buying due to announcement of price hike in January’21.

Ÿ 2W, PV and Tractor categories grow by 11.8%, 24% and 35.5% (YoY) while CV and 3W con nues to degrow by -13.5% and -
52.7% (YoY).

Ÿ To bring further clarity in CV registra ons, FADA for the first me is releasing a split in CV category by introducing LCV, MCV
and HCV wise registra ons.

Ÿ Dealer Inventory con nues to fall with PV inventory ranging from 15-20 days and 2W inventory at 30-35 days.

Ÿ PV dealers con nue to face supply side issues for the 2nd straight month leading to higher wai ng period as high as 8 months.

Ÿ FADA looks forward to demand spurring ini a ves in the upcoming Union Budget and specific ini a ves for Auto Industry
to con nue Auto Sales in higher gear.

All-India Vehicle Registra on Data for December’20 with YoY Comparison

PASSENGER Two TRACTOR Three
Wheeler Wheeler
VEHICLE Dec’20 Dec’19
Dec’20 Dec’19 69,105 51,004 Dec’20 Dec’19
Dec’20 Dec’19 14,24,620 12,73,318 27,715 58,651
35.94%
2,71,249 2,18,775 11.88% - 52.75%

23.99%

Commercial
Vehicle

Dec’20 Dec’19
51,454 59,497

- 13.52%

Light Commercial mEDIUM Commercial hEAVY Commercial oTHERS
Vehicle Vehicle Vehicle
Dec’20 Dec’19
Dec’20 Dec’19 Dec’20 Dec’19 Dec’20 Dec’19 3,728 2,838

33,986 38,280 2,528 3,018 11,212 15,361 31.36%

- 11.22% - 16.24% - 27.01% Source: FADA Research

8 F A D A Journal December 2020 | fada.in

Auto Retail Registration

OEM wise Market Share Data for the Month of December’20 with YoY comparison

Passenger Vehicle (PV)

OEM Name Dec'20 Market Share Dec'19 Market Share
(%), Dec'20 (%), Dec’20
1,00,893 46.12%
MARUTI SUZUKI INDIA LTD 1,30,772 48.21% 39,306 17.97%
11,032 5.04%
HYUNDAI MOTOR INDIA LTD 46,382 17.10% 10,339 4.73%
14,291 6.53%
TATA MOTORS LTD 19,669 7.25% 8,214 3.75%
8,343 3.81%
KIA MOTORS INDIA PVT LTD 17,913 6.60% 8,200 3.75%
5,307 2.43%
MAHINDRA & MAHINDRA LTD 15,773 5.81% 2,419 1.11%
9 0.00%
HONDA CARS INDIA LTD 9,411 3.47% 1,058 0.48%
1,492 0.68%
RENAULT INDIA PVT LTD 9,002 3.32% 885 0.40%
658 0.30%
TOYOTA KIRLOSKAR MOTOR PVT LTD 7,572 2.79% 310 0.14%
2,705 1.24%
FORD INDIA PVT LTD 4,821 1.78% 536 0.25%
145 0.07%
MG MOTOR INDIA PVT LTD 3,057 1.13% 1,247 0.57%
286 0.13%
SKODA AUTO VOLKSWAGEN INDIA PVT LTD 2,140 0.79% - 0.00%
32 0.01%
MERCEDES-BENZ INDIA PVT LTD 767 0.28% 2 0.00%
3 0.00%
NISSAN MOTOR INDIA PVT LTD 722 0.27% 2 0.00%
- 0.00%
BMW INDIA PVT LTD 604 0.22% 33 0.02%

FIAT INDIA AUTOMOBILES PVT LTD 587 0.22%

JAGUAR LAND ROVER INDIA LTD 183 0.07%

VOLKSWAGEN AG/INDIA PVT LTD 181 0.07%

FORCE MOTORS LIMITED, A FIRODIA ENTERPRISE 147 0.05%

VOLVO AUTO INDIA PVT LTD 123 0.05%

SKODA AUTO INDIA/AS PVT LTD 48 0.02%

AUDI AG 41 0.02%

MERCEDES -BENZ AG 38 0.01%

PORSCHE AG GERMANY 24 0.01%

BENTLEY MOTORS LTD 3 0.00%

ROLLS ROYCE 2 0.00%

AUTOMOBILI LAMBORGHINI SPA 1 0.00%

FERRARI INDIA PRIVATE LTD 1 0.00%

Others 1,265 0.47%

Total 2,71,249 100.00% 2,18,775 100.00%

fada.in | December 2020 F A D A Journal 9

Auto Retail Registration

OEM wise Market Share Data for the Month of December’20 with YoY comparison

OEM Name Two Wheeler (2W) Market Share Dec'19 Market Share
(%), Dec'20 (%), Dec'20
Dec'20 4,93,266 38.74%
39.25% 3,11,529 24.47%
HERO MOTOCORP LTD 5,59,118 24.55% 1,79,176 14.07%
HONDA MOTORCYCLE AND SCOOTER INDIA (P) LTD 3,49,686 14.35% 1,52,374 11.97%
TVS MOTOR COMPANY LTD 2,04,482 11.30% 3.77%
BAJAJ AUTO LTD 1,60,912 48,057 3.39%
ROYAL-ENFIELD (UNIT OF EICHER LTD) 3.58% 43,201 2.73%
SUZUKI MOTORCYCLE INDIA PVT LTD 51,003 3.14% 34,797 0.36%
INDIA YAMAHA MOTOR PVT LTD 44,758 3.01% 0.24%
PIAGGIO VEHICLES PVT LTD 42,881 0.27% 4,588 0.02%
CLASSIC LEGENDS PVT LTD 0.19% 3,061 0.01%
BMW INDIA PVT LTD 3,782 0.03% 0.02%
ADISHWAR AUTO RIDE INDIA PVT LTD 2,764 0.01% 226 0.00%
INDIA KAWASAKI MOTORS PVT LTD 0.01% 142 0.02%
TRIUMPH MOTORCYCLES (INDIA) PVT LTD 396 0.01% 192 0.00%
H-D MOTOR COMPANY INDIA PVT LTD 148 0.00% 0.00%
DUCATI INDIA PVT LTD 110 0.00% 61 0.19%
DUCATI MOTOR HOLDING SPA 0.00% 201
Others including EV 74 0.31%
45 25
4
2
- 2,418
4,459

Total 14,24,620 100.00% 12,73,318 100.00%
OEM Name Dec'19
Commercial Vehicle (CV) Market Share
(%), Dec'20
Dec'20 Market Share
(%), Dec'20

TATA MOTORS LTD 19,172 37.26% 25,212 42.38%
MAHINDRA & MAHINDRA LTD 15,128 29.40% 15,480 26.02%
ASHOK LEYLAND LTD 12.79% 13.56%
VE COMMERCIAL VEHICLES LTD 6,583 8,070
MARUTI SUZUKI INDIA LTD 2,637 5.12% 2,698 4.53%
DAIMLER INDIA COMMERCIAL VEHICLES PVT LTD 2,430 4.72% 2,234 3.75%
FORCE MOTORS LIMITED, A FIRODIA ENTERPRISE 1.79% 1.66%
SML ISUZU LTD 922 0.68% 987 1.66%
Others 349 0.67% 986 0.82%
344 7.56% 487 5.62%
3,889 3,343

Total 51,454 100.00% 59,497 100.00%

10 F A D A Journal December 2020 | fada.in

Auto Retail Registration

OEM wise Market Share Data for the Month of December’20 with YoY comparison

Three-Wheeler (3W)

OEM Name Dec'20 Market Share Dec'19 Market Share
(%), Dec'20 (%), Dec'20
24,347
BAJAJ AUTO LTD 9,570 34.53% 10,260 41.51%
PIAGGIO VEHICLES PVT LTD 5,037 18.17% 17.49%
3,893
MAHINDRA & MAHINDRA LTD 1,212 4.37% 3,955 6.64%
ATUL AUTO LTD 1,187 4.28% 1,042 6.74%
TVS MOTOR COMPANY LTD 2.85% 15,154 1.78%
Others including EV 790 35.79% 58,651 25.84%
9,919
Dec'19 100.00%
Total 27,715 100.00%
12,660 Market Share
Tractor 8,274 (%), Dec'20
5,743 24.82%
OEM Name Dec'20 Market Share 5,727 16.22%
(%), Dec'20 6,075 11.26%
3,461 11.23%
MAHINDRA & MAHINDRA LTD (TRACTOR) 16,385 23.71% 3,707 11.91%
MAHINDRA & MAHINDRA LTD (SWARAJ DIVISION) 11,668 16.88% 1,895 6.79%
INTERNATIONAL TRACTORS LTD 13.57% 794 7.27%
9,380 463 3.72%
243 1.56%
TAFE LTD 8,022 11.61% 218 0.91%
ESCORTS LTD (AGRI MACHINERY GROUP) 7,162 10.36% 169 0.48%
JOHN DEERE INDIA PVT LTD (TRACTOR DEVISION) 5,271 1,575 0.43%
EICHER TRACTORS 4,410 7.63% 0.33%
CNH INDUSTRIAL (INDIA) PVT LTD 2,593 6.38% 3.09%
KUBOTA AGRICULTURAL MACHINERY INDIA PVT LTD 1,049 3.75%
1.52%

VST TILLERS TRACTORS LTD 446 0.65%
FORCE MOTORS LTD, A FIRODIA ENTERPRISE 296 0.43%
CAPTAIN TRACTORS PVT LTD 288 0.42%
INDO FARM EQUIPMENT LTD 159 0.23%
Others 1,976 2.86%

Total 69,105 100.00% 51,004 100.00%

Source: FADA Research

Disclaimer:
1. The above numbers do not have figures from AP, MP, LD & TS as they are not yet on Vahan 4.
2. Vehicle Registra on Data has been collated as on 09.01.21 and in collabora on with Ministry of Road Transport & Highways, Government of India

and has been gathered from 1,270 out of 1,477 RTOs.
3. CV is subdivided in the following manner

a). LCV – Light Commercial Vehicle (incl. Passenger & Goods Vehicle)
b). MCV – Medium Commercial Vehicle (incl. Passenger & Goods Vehicle)
c). HCV – Heavy Commercial Vehicle (incl. Passenger & Goods Vehicle)
d). Others – Construc on Equipment Vehicles and others

fada.in | December 2020 F A D A Journal 11

FADA Research

Rising Safety Standards in Auto Industry

In today’s world, environ- However, the number is likely (BNVSAP), created on lines of 125cc are fi ed with An -Lock
mental obliga ons and safety to come down shortly as a the New Car Assessment Braking Systems (ABS), a
standards are some of the series of safety norms, both Programme (NCAP) of other feature that prevents wheels
most cri cal issues in the ac ve and passive, have been countries, which has taken from locking up even under
automo ve industry. adopted by the Government of Indian made cars at par with hard braking from April 2019
Automobile manufacturers India for vehicles in 2019 which developed markets. In this onwards. On the other hand,
across the world are adop ng is the highest ever in the respect, some of the recent Combined-Braking System
stringent measures and trying history of the Indian Auto safety measures created by the (CBS) for two-wheelers with
hard to get through with the Industry. manufacturers are discussed engine capacity less than
criterion of their respec ve below: 125cc, launched on 1st April
governments. India in the past The Ministry of Road Transport 2018. Since then, the CBS
decade has significantly and Highways (MoRTH) has Mandatory Fitment of An - Criteria has been extended to
progressed in improving also adopted crash tests for all Lock Brakes (ABS) / Combines all vehicles irrespec ve of the
automo ve safety standards kinds of passenger vehicles Braking System (CBS) for 2W date of launch.
and has been gradually sold in the country as per the and ABS for Passenger Cars
aligning with interna onal Bharat New Vehicle Safety In the same way, the fitment of
safety standards. Assessment Programme All the two-wheelers with an the An -Lock Braking System
engine displacement over (ABS) has been made
India ranks the worst in compulsory for all new cars
automo ve fatali es with 11% which have been launched
of total accidents across the from April 2018. The latest
globe, killing 151,113 people in mandate in April’19 has made
449,002 road accidents across it now applicable for all
in 2019. This is at a fatality rate passenger cars, including all
of 5.7 accident deaths per the exis ng models.
10,000 vehicles, as per the
report by the transport Standard Fitment Regula on
research wing of the Ministry of Driver-Side Airbag, a Speed
of Road Transport & Highways. Warning Alarm, Seatbelt
Reminder Alarms for both

Trend of Road Accidents, Death, Injuries and Fatality Rate, 2014 - 2019

7.3 7.0 6.6

6.2
5.8 5.7

489 501 481 465 467 449

140 146 151 148 151 151
493
500 495 471 469 451
2014
Road Accidents ('000) 2015 2016 2017 2018 2019

Road Accidents Death ('000) Road Accidents Injuries ('000) Fatality rate (No. of accident deaths per 10,000 vehicles)

Source: MoRTH Wing, FADA Research

12 F A D A Journal December 2020 | fada.in

FADA Research

Driver & Co-Driver and Rear a vehicle, while the reverse 3.) Side impact – Mobile Electronic Stability Control
Parking Sensors gear has been ac vated. deformable barrier at 50 (ESC) minimizes loss of control
Reverse car parking sensor Kmph. over a vehicle or a loss of
All new cars sold in India, from helps in preven ng injuries to trac on on slippery surfaces by
1st July 2019 onward has been small children and reduces the As a result, most of the OEMs applying brakes on the wheels,
mandated with the standard chances of collision with other in India re-engineered their it helps by automa cally
fitment of airbags, in objects, which are not visible vehicles. Moreover, they have reducing the engine power
combina on with front seat from the car’s side mirrors or also phased out a few older un l stability and driver
belts, which majorly reduces rear-view mirrors. models to comply with the control is restored. On the
the risk of acute injury of driver new crash tes ng standards. other hand, Autonomous
and front passenger in the Crash Test Standards Furthermore, pedestrian Emergency Braking (AEB),
event of frontal collisions. safety norms have been made majorly works with radar and
Cars launched a er 1st compulsory for all new cars camera technology to judge
Earlier the norms mandated October 2017, have been launched from October 2018, the posi on of a vehicle
only a driver-side airbag, enforced with the Inflexible later expanded to include all concerning its surroundings
however now the Government requirements of a full-frontal exis ng passenger cars from and it can apply the brakes
has made it mandatory to have impact, offset frontal impact, 1st October 2020. automa cally if it detects an
front passenger-side airbag as and lateral side collision imminent head-on-collision.
well, as a standard feature. impacts. However, this Upcoming Advanced Safety
Moreover, all cars launched requirement later expanded Standards Presently, Autonomous
before 1st April 2021 will have its scope to all exis ng models Emergency Braking (AEB) is not
to comply with new in India from 1st October 2019. In the near future, the mandatory worldwide and it is
regula ons of having dual government is planning to expected that it will become so
front airbags which will be a As per new crash-test norms, mandate two new ac ve safety by 2021 in the European Union
compulsory safety feature vehicles will undergo tests: features for the Indian and by 2022 in the United
from 1st June 2021 onwards. automobile industry such as States. Whereas, the
1.) Full Frontal Impact – At 48 Electronic Stability Control (ESC) Government of India is also
A Driver and co-driver seat- Kmph and Autonomous Emergency planning to mandate both ESC
belt reminder alarm which act Braking (AEB) which will help in and AEB as standard vehicle
as an audio warning, an alarm 2.) Offset-frontal impact – avoiding or mi ga ng an safety features by 2022 – 2023.
will remain ac ve un l both Fixed deformable barrier accident pre-impact. This will make Indian vehicles
the front seat passenger are at 56 Kmph, safer in comparison to their
being belted up properly. The global counterparts and will
3-Point Front seat belts also increase the safety
provide passive support for percentage of not just for
airbags to work effec vely in passengers si ng inside the
case of a vehicle collision. vehicle but for pedestrians as
Moreover, an added speed well. Moreover, it is expected
warning system has helped in that the introduc on and
reducing the root cause of adop on of these safety
acute road accidents in India. standards will improve road
As, an alarm turns on and it transport and reduce overall
beeps every sixty seconds if a accidents and fatality rate in
car is running at above 80 the country. However, one of
Kmph, and a con nuous beep the biggest obstacles that
sound when the speed is Indian Auto Manufacturers will
above 120 Kmph. face is bringing in maximum
safety for a vehicle at an
Another compulsory safety affordable cost, so that cost of
regula on for all cars is reverse vehicles does not go abruptly
sensors. Reverse sensors high!
provide an audio warning
when an object is in the path of

fada.in | December 2020 F A D A Journal 13

Demystifying GST

New Game Changers in GST Input Tax Credit !

DR SANJIV AGARWAL There is being a major shi in 86B are as follows- 99% by u lising Input Tax
Chartered Accountant availment of input tax credit credit-The said registered
M/s Agarwal Sanjiv & (ITC) w.e.f. 01.01.2021 effected a) Rule 86B has an overriding persons cannot use Input
Company vide N.No. 94/2020-CT dated impact on any other rule- Tax Credit in excess of
22.12.2020. These changes are This rule starts with the ninety-nine per cent of
MS NEHA SOMANI with reference to new rule 86B non-obstante clause and output tax liability.
Chartered Accountant making mandatory cash has an overriding impact
M/s Agarwal Sanjiv & payment of 1 percent and Rule on any other provision of e) Excep ons carved out for
Company 36(4) of CGST Rules, 2017 the Rules. applicability of the Rule
providing restric ons on use of
amount available in electronic b) Rule casts a restric on on (i) Payment of Income
credit ledger. Both these use of ITC while Tax of more than one lakh
amendments are analyzed in discharging output rupees- Rule 86B would
this ar cle. liability-This rule casts a not be applicable in cases
restric on on registered wherein the persons
Mandatory cash payment in person on use of amount men oned hereinbelow
lieu of Input Tax Credit [Rule available in electronic have deposited amount of
86B] credit ledger to discharge more than one lakh
liability towards output rupees as income tax
Central Government has tax. under the Income-Tax Act,
inserted a new rule in CGST 1961(43 of 1961)–
Rules, 2017, Rule 86B, c) Applicable on registered
providing for restric ons on persons having value of • The said registered
use of amount available in taxable supply other than person or
electronic credit ledger. This exempt supply and zero-
rule shall be applicable from rated supply, in a month • The proprietor or
1st January, 2020 and has an exceeding fi y lakh karta or the managing
over-riding effect over other rupees-This rule is director of the
rules. It states that the applicable on the registered person or
registered person shall not use registered person whose
the amount available in value of taxable supply • Any of the two
electronic credit ledger to other than exempt supply partners, whole- me
discharge his liability towards and zero-rated supply, in a Directors, Members
output tax in excess of ninety- month exceeds fi y lakh of Managing
nine per cent. of such tax rupees. This limit is not be Commi ee of
liability, in cases where the checked with respect to Associa ons or Board
value of taxable supply other preceding financial year of Trustees of the
than exempt supply and zero- but for each month for registered person, as
rated supply, in a month which return is being filed. the case may be,
exceeds fi y lakh rupees. This Therefore, in cases
is subject to certain wherein turnover of The eligibility check would
restric ons and condi ons of taxable supply would be be made in each of the last
eligibility. less than 50 Lakh then this two financial years for
restric on would not be which the me limit to file
Salient features of new Rule applicable and supposedly return of income under
86B in subsequent month, if subsec on (1) of sec on
the turnover exceeds 50 139 of the said Act has
Rule 86B (Restric on on use of Lakh, then restric on expired.
Input Tax Credit for discharging would have to be checked.
the output liability) has been (ii) Refund of ITC towards
inserted into CGST Rules, 2017. d) Output liability cannot be Zero Rated Supplies of
The salient features of Rule discharged in excess of Goods or services or both-
Rule 86B would not be
applicable in cases

14 F A D A Journal December 2020 | fada.in

Demystifying GST

wherein registered person to make keep a track that turnover would in any a er misusing ITC without
has received a refund whether his cumula ve case be more than 50 lakh payment of any tax liability in
amount of more than one discharge of tax liability of p.a. cash.
lakh rupees in the output tax through
preceding financial year electronic cash ledger is 4) However, this will also be There is a general percep on
on account of unu lised more than 1% upto the not applicable to firm / amongst taxpayers that such a
input tax credit under month of filing of return. company whose requirement may add to
clause (i) of first proviso of proprietor or partner or compliance burden and also
subsec on (3) of sec on (v) Specified Registered MD or WTD pays more put a pressure on working
54 i.e. zero rated supplies persons-Restric on under than Rs. 1 lakh as income capital. However, this one
made without payment of Rule 86B is not applicable tax. Since this may be the percent requirement is on the
tax. It would be apt to in cases wherein the case in most of the cases tax amount and not that on
highlight that the refund registered person is the rule may be sparing be t u r n ove r. C B I C h a s a l s o
should have been received Government Department; applicable to dealers only. clarified that the cash
in the preceding financial or a Public Sector payment of 1% is to be
year. Undertaking; or a local 5) There will be no rela on in calculated on the tax liability
authority; or a statutory case of new businesses in a month and not turnover of
(iii) Refund of Input Tax body. the month. In fact, it amounts
Credit due to Inverted 6) The restric on imposed to only 0.01 % of turnover. For
Duty Structure-the (vi) Commissioner or an are subject to certain example, if a dealer has made
registered person has office authorized by him condi ons as discussed sale of Rs 1 crore of the goods
received a refund amount empowered to remove above. whose tax rate is 12% and if he
of more than one lakh the said restric on a er is discharging his tax liability
rupees in the preceding such verifica on-The rule 7) Restric ons imposed by more than 99% through ITC,
financial year on account empowers the Rule 86B will further then he has to pay only Rs
of unu lised input tax Commissioner or an increase the compliance 12,000 under this rule. On the
credit under clause (ii) of officer authorized by him burden for the taxpayers other hand, a composi on
first proviso of subsec on in this behalf to remove dealer would have paid Rs 1
(3) of sec on 54 i.e. the said restric on a er Thus, one percent of the tax lakh in cash with this volume of
Inverted duty structure. It such verifica ons and liability will always remain sale.
would be apt to highlight such safeguards as he may unavailed for which refund will
that the refund should deem fit. also not be granted. This will also not effect small
have been received in the businesses as it is applicable
preceding financial year. Impact CBIC Clarifica ons to the registered person
whose value of taxable supply
(iv) Cumula ve discharge 1) The new rule overrides all However, CBIC has clarified other than exempt supply and
of tax liability of more than other exis ng rules which that the new rule provides for export, in a month exceeds Rs
1% during the financial implies that this has to be various exemp ons like 50 lakh that means those
year- Restric on in Rule mandatory followed in all exporters, suppliers of goods whose annual turnover is
86B is not applicable cases. of inverted duty structure, more than Rs 6 crore.
wherein cumula vely taxpayers having a footprint in Therefore, the new rule does
upto the said month in the 2) T a x p a y e r s h a l l b e the Income Tax data base etc. It not apply to micro and small
current financial year mandatorily required to is expected that this rule would businesses, and Composi on
registered person has pay 1% of the tax liability be applicable to less than 0.5% dealers.
discharged his liability in cash despite there of total taxpayer base of 1.2
towards output tax being balance in the crore. The rule clearly Further, such 1% requirement
through the electronic electronic credit ledger. iden fies where the risk to is applicable to only those
cash ledger for an amount revenue is high and imposes registered persons whose
which is in excess of 1% of 3) I n o t h e r w o r d s , t h e deterrence to the fraudsters in value of taxable supply, other
the total output tax maximum amount which a mul -layered fraud of than exempt supply and
liability. Therefore, while can be availed by way of passing fake ITC. This rule export, in a month exceeds Rs
filing return for each ITC shall be 99% of the tax would help to control such 50 lakh that means those
month, taxpayer now has liability. Though there is a fraudsters, who issue fake whose annual turnover is more
threshold limit of 50 lakhs invoices and show high than Rs 6 crore. The new rule is
p.a., this will apply to all turnovers, but have no
FADA members as there financial credibility and flee

fada.in | December 2020 F A D A Journal 15

Demystifying GST

also not applicable in the cases documentary requirements and linking it to furnishing of have been furnished by the
where the registered person and condi ons for claiming GST return in Form GSTR-1. supplier.
has / is : input tax credit. These restric ons are: In case, such details are not
ITC claim in respect of invoices furnished in GSTR-1 by the
(a) deposited more than Rs 1 Prior to 01.01.2021, Rule 36(4) which are not uploaded by any supplier, then input tax
lakh rupees as Income Tax provided that vendor in its Form GSTR 1 or credit can be availed upto
in each of the last two through Invoice Furnishing 5% of such invoices. This
years, “(4) Input tax credit to be Facility (IFF) will now be limit is 10% presently but
availed by a registered person allowed maximum upto 5% w.e.f. 01.01.2021; this limit
(b) received a refund of more in respect of invoices or debit (currently it is 10%) of the will be 5% only. This will
than Rs 1 lakh in the notes, the details of which invoices furnished by the result in blocking of credit
preceding financial year have not been uploaded by the vendors in their Form GSTR 1 (funds) to the extent of limit
on account of export or suppliers under sub-sec on (1) or IFF Facility. prescribed and result in
inverted tax structure. of sec on 37, shall not exceed The new reduced limit of 5% pressure on working capital
10 per cent of the eligible shall be effec ve from January o f t h e tax p aye r. S u c h
(c) paid output tax through credit available in respect of 01, 2021 i.e., it will apply to all restric ons has been
cash in excess of 1% of the invoices or debit notes the invoices including invoices s pulated without any fault
total output tax liability, details of which have been which are dated or issued on or or non-compliance of the
applied cumula vely, up uploaded by the suppliers a er January 01, 2021. taxpayer.
to the month in the under sub-sec on (1) of It may be noted that the Taxable person claiming input
current financial year sec on 37.” restric on of claiming input tax tax credit should ensure and
credit has been varied prevail upon suppliers to file
(d) a government depart- Vide No fica on No. 94/2020- frequently and can be traced
ment, PSU, local authority Central Tax dated 22.12.2020, as follows: mely returns.
or statutory body various amendments have Conclusion
been made in Rules. Following To illustrate Rule 36(4), Looking to both the
Besides, the registered two amendments have been suppose a registered person is aforemen oned changes,
persons falling in any of the made in Rule 36(4) of CGST filing its GSTR-3B for the availment of ITC under GST law
exempted category Rules, 2017. month of January , 2021, ITC has become complex and
including paying Rs 1 lakh as can be claimed as per following unfriendly for the taxpayers.
Income Tax in each of the • Return u/s 37(1) has to be table : Apart from affec ng the
last two financial year or furnished, not merely liquidity of the taxpayers
having received refund of uploaded by the supplier Impact of Amendment adversely to the extent of new
more than Rs 1 lakh in the The 100% Input Tax Credit has restric ons / mandatory cash
previous year on account of • The availment of credit to to be availed based on invoices payment, the changes go
export or inverted duty be taken has been / debit notes, details of which
structure, etc. are also out restricted to 5% instead of against the spirit of GST law
of purview of this rule. With 10% presently. itself crea ng ar ficial
these exemp ons and obstacles to the seamless
condi ons and precise This change is effec ve from credit.
targe ng, the requirement 1st January, 2021
of mandatory payment of at
least 1% of the tax liability in Thus, credit of Input Tax for the
cash would apply only to invoices not furnished is now
risky or suspicious taxpayers restricted to 5% of the tax for
and genuine taxpayers invoice details furnished
would remain excluded. effec ve from 01.01.2021.
Earlier the limit was 10%.
New restric ons for Input Tax Further, now merely the
Credit (ITC) [Rule 36(4)] invoices being uploaded would
not be sufficient to claim the
While Sec on 16 of CGST Act, credit of the input tax.
2017 provides for eligibility
and condi ons for taking input The amended rule makes
tax credit, Rule 36 of CGST restric ons on ITC being taken
Rules, 2017 prescribes stricter by curtailing the
percentage of ITC to be taken

16 F A D A Journal December 2020 | fada.in

FADA in News

FADA State Chapters Initiate Dialogue with State Machinery

FADA Odisha Chapter led by State Chairperson - Mr Pradeep Agarwal,
Regional Directors - Mr Kamal Agarwal and Mr Akhil Poddar along with
other members met Mr Sanjeeb Panda IPS, Transport Commissioner-cum-
Chairman, STA, Odisha to represent and discuss the issues faced by dealers
in the State of Odisha. Mr Panda has assured to look into this and has
promised swift resolution.

FADA Maharashtra Chapter led by State FADA Jharkhand State
Chairperson - Mr Amar Jatin Sheth, Immediate Chairperson - Mr Govind
Past President - Mr Ashish Harsharaj Kale and
Members - Mr Sharad Shah & Mr Sachin P Mewar along with
Mahajan met Maharashtra Industrial Members - Mr Hemand
Development Corporation (MIDC) CEO, Dr P
Anbalagan & appraised about the operational Jain and Mr Punit
hardships which Auto Dealers are facing in Poddar met Transport
MIDC Areas. Dr Anbalagan has assured to look
into this and has promised swift resolution. Secretary - Mr K Ravi
Kumar and discussed
auto dealers issues in

the State.

FADA - FICCI Tie Grows Stronger!

FADA is proud to announce
the inclusion of our President

Mr Vinkesh Gulati in FICCI’s
National Executive

Committee for the Year 2021.

Mr Gulati is also the 1 FADA
President to receive this
invite.

FADA is greatful to Mr Uday
Shankar, President FICCI to

bestow his honour.

L to R: FADA CEO - Mr Saharsh
Damani, FICCI Secretary General -
Mr Dilip Chenoy and FADA
President - Mr Vinkesh Gulati

fada.in | December 2020 F A D A Journal 17

FADA in News

Business Standard
The Economic Times

The Hindu Business Line
The Indian Express

The Financial Express

Deccan Chronicle The Times of India Business Standard

18 F A D A Journal December 2020 | fada.in

FADA in News

Mint Hindustan Times

Amar Ujala Business Standard Hindi

The Hindu Orissa Post

fada.in | December 2020 F A D A Journal 19

One Nation | One Association Federation of Automobile Dealers Associations (FADA)
invites its members to participate in

Tuesday - thursday

February 9-11

The NADA Show Expo is the auto industry's premier marketplace of products, services and
technologies specically targeted to franchised new car dealerships. Join thousands of

dealers, dealership managers, exhibiting companies and the world’s leading auto industry
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For three days, award-winning dealer What will you Gain
education, franchise meetings, industry
networking and, of course, NADA Expo, the ü 3 days of live content and general
virtual dealer marketplace, will deliver non- sessions
stop content to help you connect, learn and
build your business from the comfort of your ü 60+ Education Sessions and the Virtual
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A progressive dealer should not miss this ü Translated workshops
opportunity.
ü NADA Expo shopping, exhibitor
Registration appointments & product demos

Special Fee for Member : INR 18,000 + GST @ 18% ü NADA Welcome Reception

ü Women Dealers Retail Happy Hour

ü Downloadable resources

ü On-demand session recordings

Book Your Seat Immediately

For any further clarication, please contact: Ms Indira Menon at +91 99682 81214 or e-mail to [email protected].

Govt. Notification

CG-DL-E-28122020-223970
EXTRAORDINARY

PART II—Sec on 3—Sub-sec on (I)

PUBLISHED BY AUTHORITY

NEW DELHI, MONDAY, DECEMBER 28, 2020/PAUSHA 7, 1942

MINISTRY OF ROAD TRANSPORT AND HIGHWAYS

NOTIFICATION
New Delhi, the 28th December, 2020

G.S.R. 797(E).—The following dra rules further amend the Central Motor Vehicles Rules, 1989, which the Central Government
proposes to make in exercise of the powers conferred by Sec ons 110(1), of the Motor Vehicles Act, 1988 (59 of 1988). This
no fica on is hereby published, as required by sub-sec on (1) of Sec on 212 of the said Act for informa on of all persons likely to be
affected thereby and no ce is hereby given that the said dra rules shall be taken into considera on a er the expiry of a period of
thirty days from the date on which the copies of this no fica on, as published in the Gaze e of India, are made available to the public.

Objec ons or sugges ons, if any, may be sent to the Joint Secretary (MVL, Transport, Toll), Ministry of Road Transport and Highways,
Transport Bhawan, Parliament Street, New Delhi-110 001, Email: [email protected].

Any objec ons or sugges ons which may be received from any person with respect to the said dra rules before the expiry of the
period aforesaid will be considered by the Central Government;

Dra Rules

1. Short tle and commencement.—(1) These rules may be called as the Central Motor Vehicles (……………Amendment) Rules,
2020.

(2) Save as otherwise provided in these rules, they shall come into force on the date of their final publica on in the
Official Gaze e.

2. In the Central Motor Vehicles Rules, 1989 (herein a er referred as the said rules) -

A er sub-rule (9) of Rule 125 the following sub-rule shall be inserted, namely:-

“(9A) Notwithstanding anything contained in Sub rule (9), vehicles manufactured on and a er 01st Day of April 2021, in the case of
new models, and 01st day of June 2021, in the case of exis ng models, shall be fi ed with airbag for the person occupying the front
seat, other than the driver. The requirement for such airbag shall be as per AIS 145, as amended from me to me, ll the
corresponding Bureau of Indian Standards (BIS) specifica ons are no fied under the Bureau of Indian Standards act, 2016 (11 of
2016).”

[F. No. RT-11028/16/2016-MVL]

Note : AMIT VARADAN, Jt. Secy.

The principal rules were published in the Gaze e of India, Extraordinary, Part-II, Sec on 3, Sub-sec on (I), vide no fica on
number G.S.R. 889(E), dated the 16th September, 2020 and lastly amended vide No fica on number …….. Dated………….

fada.in | December 2020 F A D A Journal 21

Consumer Protection Act

AN INTRODUCTION TO THE CONSUMER PROTECTION ACT, 2019

Consumer Protec on Act 1986 Commission have been alleges a defect in a vehicle, it is
conferred with jurisdic on to necessary that such vehicle
was the first a empt to entertain Original Complaints must be referred for an expert
upto the value of Rupees one examina on. It is absolutely
achieve the objec ve of Crore, One Crore to Ten Crore, necessary for dealers like us to
and Ten Crore and above, harp upon the significance of
consumer protec on. The respec vely. This means a expert report. In absence of an
significant revision in the expert report, any adjudica on
melines prescribed by the monitory threshold. by a consumer forum is bound
to remain ques onable.
1986 act for the redressal of Further, a fundamental
amendment has been Sec ons 40 and 50 have now
grievances were prac ced introduced in Sec on 34(1), conferred powers upon
Sec on 47(1)(a) and Sec on District and State Commission
more in breach, by the courts 58(1)(a) of the new act, to review their own orders
whereby the method of within a period of 30 days.
itself. It was common to computa on of pecuniary Sec on 66 of the New Act also
jurisdic on has been makes a provision for experts
consumer cases remain amended. Under the Old Act of to assist the Na onal
1986, the pecuniary Commission or State
pending for years altogether. jurisdic on was calculated on Commission, in ma ers which
the basis of value of goods or involve larger interests of the
The provisions of old law were services and compensa on consumers.
claimed. However, under the
u lized by unscrupulous new act pecuniary jurisdic on Another very notable
is calculated, simply on the amendment is with respect to
li gants in dragging the basis of value of goods of the statutory deposit for the
services paid as considera on. purpose of filing First Appeal.
ma ers endlessly. The Central Under the old act, an appeal
The aspect of territorial could be filed by deposit of
Government also found that jurisdic on for the purpose of statutory mandated amount of
ins tu on of Original 50% of the awarded amount,
the mechanism provided Complaints has also with a ceiling of Rs. 25,000/-
undergone a significant for State Commission and Rs.
ANAND SHANKAR JHA under old Act was inadequate change. Under the new act the 35,000/- for Appeal to Na onal
to afford protec on to Complainant can file a Commission. In the new law,
Advocate on Record Consumer Complaint even at these ceiling have been
consumers from exploita on, the place where he resides or removed. Resultantly, for the
personally works for gain. This purpose of filing an appeal, the
Supreme Court of India misleading adver sement and is an amendment, introduced appellant must deposit
solely for the benefit of the straight 50% of the awarded
defec ve products offered by consumers. Sec on 37 and amount. This has been done to
38(1) of the new act now discourage appeals.
e-commerce companies. introduce a provision for
media on. Cons tu on, powers and
In year 2015, Consumer func oning of the Central
Protec on Bill 2015 was tabled The procedure for admission Authority
before Lok Sabha. The of a Complaint under Sec on
recommenda on of the 38(2) has remained One of the most remarkable
standing commi ee were unchanged. Please note that features of the 2019 Act is
incorporated in the Consumer whenever a complainant establishment of the Central
Protec on Bill 2018, which Consumer Protec on
lapsed due to dissolu on of
Lok Sabha. Finally, the
Consumer Protec on Bill was
tabled in 2019. It received the
Presiden al assent on
09.08.2019. A significant
number of sec ons were
no fied on 15.07.2020. The
remaining provisions were
no fied on 23.07.2020. The
law is in full force now.

Notable Changes in the
Func oning of Consumer
Commissions

The pecuniary jurisdic on, has
been revised and the District
Commission, State
Commission and Na onal

22 F A D A Journal December 2020 | fada.in

Consumer Protection Act

Authority (“Central Director or may be an Manufacturer, as men oned third party expert opinion, in a
Authority”). The Central inves ga on by Compe on in Sec on 2(36). It includes a product liability ac on is
Authority shall have an Commission of India. person who assembles parts paramount. Whenever, a
inves ga on wing to aid and made by others and also consumer commission is called
assist them for the purpose of Since the Central Authority is includes a person who makes upon to decide on the
conduc ng an enquiry or authorized to issue direc ons a product and sells it further. allega on of manufacturing
inves ga on under this act. for recalling of goods or In effect, the defense of defect or design defect, such
reimbursement of the price of principle to principle cases must mandatorily
The Central Authority is goods, it is essen al that the rela onship can no more be undergo expert examina on.
broadly meant as a regulator very proceedings before the pleaded. Sec on 84 of the These ma ers cannot be
in ma ers rela ng to viola on Central Authority must be New Act holds a manufacturer allowed to be decided merely
of rights of consumers a ended with necessary squarely liable for on affidavits of the par es.
(Sec on 2(9)), unfair trade technical exper se and manufacturing defect, design
prac ces (Sec on 2(47)) and keeping in mind the larger defect, devia on from You must appreciate that any
false or misleading implica ons of an adverse manufacturing specifica ons case of successful product
adver sements (Sec on order. It must also be noted and non conformity to liability ac on against us as
2(28)). There are several that concealment of express warranty. However, manufacturer or even his
overlapping factors under important informa on even product sellers are dealers, may act as a trigger for
these heads, however, amounts to misleading responsible under condi ons the Central Authority to
broadly the idea is not to wait adver sement. Therefore, it is men oned in Sec on 86 of inves gate the relevant
for each and every consumer very important for a proper the new Act. product. It may also be the
to approach the grievance legal ve ng for every genesis of a class ac on suit.
redressal mechanism. adver sement from the The most important addi on is Therefore, these ma ers
purview of New Act. in Clause 84(1)(e) of the new deserve utmost a en on and
The Central Authority is act, whereby failure to provide care.
mandated to act on the basis It must also be noted that the adequate instruc ons for
of wri en complaints or suo subsequent contraven on by correct usage also invites an It is also important in light of
motu ac on. Its powers and any manufacturer a racts ac on for product liability. Sec on 84(1)(e) of the new
func ons are listed in Sec on penal provision including act to undertake an exercise
18 which has very wide. In penalty upto Rs. 50 Lakhs and a That some of the excep ons of reviewing all the warranty
ma ers where the Central jail term for the endorser have been listed in Sec on manuals which are handed
Authority comes to a extendable upto 3 years. As a 87(2) which are not very out at the me of purchase of
conclusion that any goods or manufacturer, you can expect significant. What is most vehicles. Dealers must be
service provider has violated a few inves ga ons in near important is that a product allowed to par cipate in such
rights of the consumer or has future. manufacturer cannot plead an exercise. Notable is the fact
indulged in unfair trade due diligence and bonafide that it is not only necessary
prac ces, it is authorised not Product Liability Ac ons as a defence (Sec on 84(2)). for the manufacturer/ dealer
only to issue direc ons for This is akin to placing strict to give full disclosure, but also
discon nua on, but also is Product Liability has been liability on product to provide adequate
authorized to either direct for introduced under Chapter VI of manufactures. As we see it, instruc ons of correct use.
a recall or reimbursement. the new act. It has been the most relevant excep on This is specifically relevant in
Non-compliance may also defined under Sec on 2(34) to to be pleaded in all the ma ers pertaining to claims
lead to punishment of mean the responsibility of a ma er of product liability of non deployment of airbags,
imprisonment. product manufacturer or ac ons would be under regular failure of clutch
product seller, to compensate Sec on 87(1) wherein it is plates, brake linings,
It is necessary to treat the for any harm caused to a contemplated that a product hydrosta c lock etc.
ma er which shall be consumer by such defec ve liability ac on cannot be
inves gated by the DG product. In short, the product brought if the product was We have o en come across
inves ga ons or before the liability has changed the misused, altered or modified. ma ers, where comments are
Central Authority with utmost posi on from Caveat Emptor provided, to plead that the
cau on. Such inves ga ons (Buyer Beware) to Seller As an organisa on, we must vehicle could not give
must be accorded the same Beware. ensure that every ac on for op mum performance due to
level of a en on as is given to product liability is properly improper handling. However,
a Complaint pertaining to a Firstly, it is important to see resisted. The relevance of a we do not find the method of
the defini on of Product

fada.in | December 2020 F A D A Journal 23

Consumer Protection Act

correct usage anywhere training sessions for in-house overhaul of warranty specifically recorded by
specified. One can always legal team. manuals in light of way of a le er and follow
argue a defence available Product liability up.
under Sec on 87(3) that the Best Prac ces for in house provisions highlighted
instruc on for proper usage of Legal / Business Teams while above We have also observed that
a vehicle is obvious and handling Consumer complete job cards are not
commonly known. However, it Complaints. (g) T h e i n v e s g a o n s / always kept or made available.
is be er to properly scru nize complaints before the It is absolutely essen al to
all warranty manuals, rather I would respec ully urge you Central Authority must be place all the job cards right at
than to rely on the defence of to focus on these areas: handled by a specific the stage of Wri en Version.
common sense. team. In this regard, staff This has o en led to adverse
(a) T h a t s e r v i c e o f needs proper training as inference being drawn against
Media on original complaints are duly well. us as manufacturers. There
recorded in an inward register must be a system whereby the
The 2019 Act has also and stamp be maintained on (h) Arrange for media on job cards are also accessible to
introduced a new Chapter V. cover envelops. training as a necessary the manufacturer at all mes.
This mandates establishment condi on for every legal This is very cri cal as we o en
of media on cells to be (b) Keep strict deadlines for manager. lose precious me in following
a ached with every District comments, documents up with dealerships in colla ng
Commission, State and clarifica ons (i) All the adver sements, in job cards and sa sfac on
Commission and Na onal necessary for dra ing a any form, must undergo notes.
Commission. The Sec on 37 response. ve ng from the
mandates, that the consumer perspec ve of misleading The Consumer Protec on Act,
commission either at the (c) E n s u r e m o v i n g a n adver sements and 2019 is a significant
stage of admission or any me applica on under Sec on specifically from the development in overhauling
therea er can refer the 38(2)© for expert aspect of withholding the regime for protec on and
ma er for media on if there examina on wherever material informa on. promo on of rights of
exists elements of a any defect is alleged in our consumers. We have o en
se lement. products. (j) To use the mechanism of seen that dealers/
review under Sec on 40 manufacturers have an uphill
Under a regime with punishing (d) Do present interroga- and 50 of the act. task in establishing their
statutory deposits and vast tories or even move an bonafide in these proceedings.
powers to the consumer applica on for cross (k) Recording of all the The law itself provides for
forums and state commissions, examina on in person of communica ons with inclina on towards protec on
it is certainly a wise idea to the Complainant. possible li gant on the of consumers.
consider media on as a issue such as non li ing
necessary pre-condi on. We (e) Prepare a panel of third of vehicle a er repair, I can say this with my
have o en seen that ma ers if party experts (atleast pending bill of experience that nothing is
approached with some one in every district) expenses, demurrage more important than
flexibility do get se led at the whose name can be for parking. reputa on of an organisa on
stage of media on. You can recomm-ended as an as a bonafide li gant.
ofcourse consider to have independent automo ve (l) If a consumer refuses to
expert. furnish his vehicle for
examina on, it must be
(f) Undertake a complete

24 F A D A Journal December 2020 | fada.in

Insight

How Charging in Buildings Can Power Up the

Electric Vehicle Industry - McKinsey & Co.

More than 50 million electric vehicles could be sharing roads
in the next five years. Updating charging infrastructure is
key to scaling the industry.

E-mobility has reached a sta ons, both in public spaces buildings’ electrical ar cle, we detail the effects of
pping point. More than and within homes. infrastructure, there simply will expanding EV charging on
250 new models of ba ery not be enough accessible EV infrastructure planning cycles
electric vehicles (BEV) and While EV charging sta ons in chargers to sa sfy demand. and adjacent services. Our
plug-in hybrid electric vehicles private residences are quite Further complica ng ma ers, resul ng considera ons and
(PHEV) will be introduced in common today, on-site EV charging at scale requires recommenda ons can inform
the next two years alone, and commercial charging will need careful planning of a building’s the decision making of four
as many as 130 million EVs to become a standard building electrical-distribu on system as dis nct groups of influencers:
could be sharing roads the feature in the next ten years to well as local electric-grid developers and property
world over by 2030. meet consumer demand. Across infrastructure. owners, urban planners and
the three most advanced EV regulators, grid operators, and
To support these numbers, markets—China, the EU-27 plus To make EV chargers more electrical-equipment providers.
significantly expanded the United Kingdom, and the accessible and affordable,
charging is required—and it United States—charging in urban planners, building How to integrate electric-
will not be cheap. In fact, an residen al and commercial developers, and electrical- vehicle charging into
es mated $110 billion to $180 buildings is the dominant place equipment suppliers must exis ng building and grid
billion must be invested from for the foreseeable future and integrate charging infrastructure
2020 to 2030 to sa sfy global will remain key to scaling the infrastructure into standard
demand for EV charging industry. Yet without upgrading building-design plans. In this Ini al a empts to mass-

fada.in | December 2020 F A D A Journal 25

Insight

market EVs in the early 2000s emissions by 2025, and all charge points—AC level 2 and accessibility of
faced technological traffic throughout the city, chargers and DC fast chargers infrastructure. Charging from
limita ons, par cularly limited including passenger cars, must (DCFCs)4 —across their home is currently the most
driving range, and ul mately produce zero emissions by facili es over the next decade. prevalent op on in both the
failed. Today’s EVs have a range 2030. We es mate that 22 million to EU-27 plus the United
of 150 to 300 miles per charge, 27 million combined charge- Kingdom and the United States
making them more than In terms of electricity point units will be needed in due to the low cost of
sufficient for the 95 percent of distribu on, a vehicle fleet this China, the EU-27 plus the residen al retail power and
vehicle trips that are less than size would drive addi onal United Kingdom, and the high rate of home ownership
30 miles. Today, the poten al annual power demand from United States by 2025, and among affluent early adopters
bo leneck is deploying 180 to 235 terawa hours upward of 55 million charge of EVs. Notably, those EV
charging infrastructure to (TWh) by 2025 and 525 to 770 points will be needed by 2030 owners are also willing to pay
service the projected density TWh by 2030 across China, the (Exhibit 1). for the necessary home
of EVs. EU-27 plus the United electrical upgrades that can
Kingdom, and the United Where charging occurs and add $500 to $1,000 to the cost
Over the next five years, EV States. Mee ng this demand how much electricity is used of a home AC charge point.
sales are expected to at least will require property owners to depends equally on driving
quadruple in the EU-27 plus deploy por olios of dedicated pa erns and the availability As EVs are increasingly
the United Kingdom and more
than double in the United
States, resul ng in the
adop on of more than 50
million passenger vehicles and
more than four million
commercial vehicles in China,
the EU-27 plus the United
Kingdom, and the United
States combined. As EV prices
decrease and more models
become available, EV
ownership will reach a broader
swath of the vehicle-owning
popula on, encompassing
more than 10 percent of sales
by 2025 and 20 to 30 percent
of sales by 2030.

Addi onal regulatory support
may accelerate these trends.
In recent months, Denmark
and the United Kingdom
announced bans on sales of
gasoline-fueled vehicles a er
2030, while California has set a
similar target for 2035. Some
ci es are going even further,
with plans to ban gasoline- and
diesel-fueled vehicles en rely
over the next decade. For
example, Amsterdam is
already implemen ng a
requirement that all
commercial vehicles within the
city center produce zero

26 F A D A Journal December 2020 | fada.in

Insight

adopted by less affluent lots, and commercial 2030 across China, the EU-27 The ‘hidden costs’ of
buyers and those who live in centers. plus the United Kingdom, and electric-vehicle chargers
mul unit housing (with the United States.
limited access to home AC level 2 charge points will The costs of charging
charging), public charging cons tute the majority of On the commercial side, hardware, power distribu on,
sta ons in workplaces, as well passenger-car charging major fleet operators will and so ware and services far
as dedicated EV charging sta ons, as they are typically accelerate their depot exceed the hardware cost of
hubs, will become more electrifica on as EVs become the charger unit alone (Exhibit
commonplace. This is ed to homes, workplaces, cost compe ve for an 2). And while this can create
especially true in China and and temporary des na ons increasing share of routes. headaches for building owners
the EU-27 plus the United such as stores or street Local and regional routes will and grid operators who have
Kingdom, where the sparsity parking. While a full vehicle likely be the first to electrify not planned for future
of single-family homes with charge could require by u lizing vehicles such as charging needs, it can also
in-home parking has resulted anywhere from two to eight delivery vans that can be create opportuni es for
in a higher ra o of EVs to hours on an AC level 2 charger, charged overnight using AC vendors who are able to adapt
charge points than in the it is rare for an EV ba ery to be p owe r. T h u s , AC l eve l 2 to the energy transi on.
United States. fully depleted outside of long- chargers will drive most of the
distance trips. Even so, the three million commercial Charger-unit costs can be as
Put simply, the loca on of amount of me a car is parked charge points by 2030 in low as $400 for home charge
charge points will con nue at any of these loca ons, China, the EU-27 plus the points, $2,400 for public AC
to expand beyond single- whether it be overnight or United Kingdom, and the level 2 charge points, and more
family homes to affect a during work hours, is adequate United States. Only toward than $30,000 for lower-
wide range of building to constantly maintain a full the end of the decade do we end—50 to 150 kilowa s
types. This is especially true charge under all use cases. expect a significant increase (kW)—DCFC points. When
of areas that a ract large Suppor ng passenger EVs will in commercial DCFCs, driven combined, however, the
numbers of vehicles, such as require more than 50 million by the large ba eries required following addi onal costs can
apartment complexes, AC level 2 charge points in for electric heavy-duty represent a majority of the
offices, fleet depots, parking homes, workplaces, and other transport. total up-front costs of an EV-
temporary des na ons by charging solu on:

fada.in | December 2020 F A D A Journal 27

Insight

Electric-grid upgrades are cost of new civil construc on Charging network fees and associated with electrifying
necessary when on-site power projects can be several mes data coverage are a much both personal and fleet
availability is inadequate. For that of the charger itself, smaller percentage of the vehicles.
small deployments of AC reaching as high as 15 to 30 overall up-front costs but
chargers (homes and small percent of total up-front costs represent recurring opera ng The path forward
businesses) these costs are for AC level 2 chargers and 35 costs for the life of the charging
unlikely to be significant in the to 40 percent for DCFCs. unit. So-called so costs such Short-sighted decisions made
near term, as the density of Perhaps more crucially, these as overhead, marke ng, and today over electrical and civil
chargers located in the same costs are unpredictable and opportunity costs can also vary infrastructure and the capacity
area is not high enough to frequently depend on site by project type and region. For and technology of charging
overload the local limita ons that are not known example, many charging solu ons could cause EV-
infrastructure. However, the in advance. This is another developers cite nego a ons infrastructure costs to
picture is different for large scenario where advance with property owners for use compound to hundreds of
deployments of AC level 2 prepara on can significantly agreements as the largest billions of dollars. Added to the
chargers as well as for any reduce costs. Building owners driver of project delays and already-severe costs of peak
number of DCFC chargers. In who choose to run electrical associated costs. demand charges and grid
these instances, it is almost conduit to parking spaces upgrades, the impact of this
always necessary to upgrade during ini al construc on (at The largest hidden cost is o en addi onal investment could
the power supply (main less than $50 per parking the electricity itself. Peak stall the progress of fleet
breaker) and distribu on space) can then install chargers demand charges, which are electrifica on as well as
transformer, which can in the future with no addi onal based on increments of me affordable, unhindered access
represent on average 15 to 20 civil construc on costs and when power use is at its to EV charging. Market
percent of project costs. In poten ally save thousands of highest, can be significant in par cipants that hope to stay
par cularly large dollars. the United States, especially if compe ve should adhere to
deployments, it may also be many EV owners charge their the following best prac ces:
necessary to upgrade the Design and engineering are key vehicles at the same me.
distribu on grid feeder and for complex on-site solu ons Demand charges for a 16.8 kW Property owners and building
substa on. Where such major (public AC, fleet AC, and DC fast charger in the United States operators
grid upgrades are needed, the chargers) and can represent can reach $1,600 per year, at a
lead mes required for the anywhere from 2.5 to 5.0 typical value of $8 per kW per Plan early, think long term:
local grid operator to execute percent of total costs. These month. To put this cost into Building out electrical capacity
the work can introduce charges are less prevalent in perspec ve, it represents 30 and running conduits during
significant delays of 12 to 18 home-charging solu ons, percent of the charger cost on greenfield construc on or
months, depending on how though a growing number of a recurring basis. planned retrofits can help
the work is priori zed. jurisdic ons now require prevent expensive addi onal
Fortunately, many of these electricians to obtain building Further compounding these work down the road. Owners
costs and delays can be permits for AC-charger challenges, directly and operators should integrate
mi gated by planning for installa ons. maintaining and opera ng this into the capital planning
future EV-charging demand public chargers can be process. In fact, the addi onal
during building construc ons Electrical installa on and on- onerous. Instead of managing costs of a retrofit can be up to
and retrofits. New solu ons for site upgrades, which include maintenance, customer five mes the cost of deploying
coordinated vehicle charging panels, circuit breakers, new service, and billing ac vi es chargers during ini al
(smart charging) will also cables and wiring, and directly, many building owners construc on.
enable more vehicles to charge upgrades for metering and are turning to charge-point
on a constrained electrical power distribu on, as well as operators to provide these Consider energy management
system without causing power electrician labor, can comprise services. as an alterna ve to electrical
outages. as much as 15 to 30 percent of capacity: Building your site’s
up-front costs for public AC Viewed in isola on and on a electrical capacity to solve for
Civil construc on (trenching chargers and 45 to 50 percent per-charger basis, these costs peak load may cost more than
and boring) projects will be for home AC chargers. These seem reasonable, at least an integrated site energy
necessary to retrofit buildings costs will typically be a lower when compared with the cost solu on that relies on energy-
designed before EV-charging share of the overall project for of the vehicle. However, in the management technology to
needs were considered. The DCFC installa ons. aggregate, they suggest the control charger use. On-site
need for significant investment genera on and storage
solu ons may also be
economical. These solu ons

28 F A D A Journal December 2020 | fada.in

Insight

can enable you to avoid Grid operators or integrated though ul decisions to used to balance the
expensive demand charges u li es minimize costs. intermi ency of renewables and
that may not be a avoid curtailments. The load of
considera on today but could Proac vely engage high- Integrate EV-charging u li es will be key in providing
become considerable with poten al customers on their forecasts with grid-expansion the price signals and
high EV adop on. charging needs: Today, major plans: The impact of EV mechanisms to capture this
fleet operators, shopping charging on grid infrastructure flexibility.
Match solu on to brand: centers, and corporate offices will be unevenly concentrated
Owners and operators should are faced with decisions that in specific regions. Charging-solu on providers
iden fy the types of chargers will affect their ability to cost- Concentrated residen al and operators
and payment offers that fit effec vely host EV chargers on chargers and massive DCFCs
their customers or their premises. Iden fying will likely be significant drivers Build nuance in the business
employees. This can be opportuni es to mi gate grid of power demand. Every grid case: Hidden costs are likely to
accomplished by asking a upgrades or coordinate their operator should have a make or break the business
series of key ques ons: What development with the grid- geospa al model of EV- case for an EV-charging sta on.
power level do you offer? Do expansion plan could lower charging uptake as well as a When si ng a sta on, the
users pay? Do you provide an costs for all customers and hos ng-capacity map of areas decision might depend on
inexpensive connector cable drive electrifica on in of the grid where DCFCs can be geospa al features (flat and
or a high-end charge point? operators’ service territories. installed at low cost. free of exis ng structures and
Does the charging interface obstacles) as well as on the
link to other payment profiles Ensure fair pricing: While Create mechanisms for spare capacity of the local
or accounts (such as demand-based, me-of-use capturing flexibility: EV transformer and substa on.
payments ed directly to rates and other complex rate- charging can bring more than
monthly rent or reviewable design mechanisms can be a 140 TWh of flexible load in the Coordinate for open-charging
through a web portal)? headache for customers, they United States and more than standards: Open-charging
represent a price signal that 200 TWh in the EU-27 plus the protocols and standards and
Iden fy the right business could be an incen ve for United Kingdom by 2030. charger interoperability will
model: Do you want to own and coordinated charging Except for fast charging, be key to unlocking an
operate the charger; own and behaviour. A stable price signal drivers are likely to be ecosystem of charger
contract the opera ons; or have that truly represents the indifferent to the exact ming operators, charging network
customers, tenants, or underlying grid infrastructure and rate of charging. This providers, energy
employees pay a third-party and energy costs will be key to unprecedented level of aggregators, and energy-
providerforchargingasaservice? ensuring that customers make demand-side flexibility can be management providers.

fada.in | December 2020 F A D A Journal 29

Business Achievers

Delta Corp: A Pocket Full of Aces

Jaydev Mody has become India’s casino czar by ins tu onalising Indians’ love for gambling. He now
wants to future-proof brand Del n by going interna onal and growing in the online gaming space.

Jaydev Mody, Chairman
Delta Corp Limited

WITH ITS SANDY vessels isn’t merely rush, the way only gambling ceiling—with gaming sta ons
BEACHES stretching ornamental. They are the can: You take on the house by offering everything from Texas
alongside the Arabian Sea, chill casinos that make Goa the placing a bet and always hope Hold’em Poker, American
vibes, and great food, Goa is a gaming capital of the country. to recover a por on of what Roule e, and Blackjack to
global holiday des na on that These casinos aren’t exactly the holiday cost you. Three of Indian varia ons such as Teen
a racts millions of visitors the gambling grandeur that these six gaming ships on the Pa .
from around the world. But you’d expect in the desert strip Mandovi are owned by one
while the former Portuguese of Las Vegas in the U.S., or the company: Mumbai-based Patrons range from newly-wed
colony is best known for its uber luxury experience in Delta Corp. Its flagship in Goa, couples and college friends to
beaches, its rivers are fun, too. Monaco in the French Riviera. the Del n Royale, is also the individual business - men and
Take the Mandovi, for largest gaming vessel on the professionals who are
instance. The river, which cuts But for many leisure travellers Mandovi and one of the largest regulars. There are dedicated
across Goa’s capital city of who come to Goa to spend casinos in India. rooms for regular high-rollers
Panaji, shimmers in the quality me on the beaches and poker players; and for
evenings with a kaleidoscopic during the day, these casinos Spread across four levels, the those not interested in the
reflec on of the city lights and are the go-to place in the Royale resembles a giant, gambling, the top deck of the
six beau fully lit ships. evening. Besides staying open vintage ballroom—with ship offers food and live
and serving liquor all night carpeted flooring and entertainment and a great
The presence of these floa ng long, they offer an adrenaline chandeliers hanging from the view of the city.

30 F A D A Journal December 2020 | fada.in

Business Achievers

A Delhi-based tax lawyer, who strict regula ons make it 0.5%of the industry is sums. Such a person is
didn’t want to be iden fied, difficult to grow the gaming organised. eventually barred from entry,
says that the Royale is the best business in India. Despite that, Mody says.
casino in Goa. “I go there five Delta Corp. is No. 374 on this $1.1 billion - The size of the
to six mes in a year on an year’s Fortune India Next 500 online gaming industry in India When the late Manohar
average and its size, décor, list, rising sharply from No. 447 by the end of 2020. Parrikar of the BJP was the
variety of games, and last year. chief minister of the state, the
professionalism of pit bosses SOURCE: DELTA’S INVESTOR PRESENTATION Goa government had mooted
make for a good gaming According to Delta’s latest a proposal of moving the
experience,” he says. “Though investor presenta on, the Mody contends that casinos out of Panaji and on to
beverage service can be slow, gaming market in India is responsible adults know what non-agricultural land near a
and the place tends to get es mated to be worth $60 is good and bad for them, and proposed new airport. For this,
overcrowded at mes, it is the billion per year, with casinos those who are addicted to Delta acquired land worth
best op on for those who having an es mated annual gambling will do so anyhow. ₹140 crore near the upcoming
want to gamble and cannot turnover of $200 million. The “Smoking and drinking are airport, but there is a lack of
always travel to places like organised market is barely more damaging than spending “poli cal will” to see the
Macau.” 0.5% of the total market, Mody a fun night of gaming. But project through, says Mody.
says. Most punters in India bet cigare es and alcohol aren’t “We are now thinking of
OVER A SPAN OF 15 YEARS, on sports—ranging from legal banned. And if people don’t building an electronic casino
Delta’s founder and chairman horse racing to illegal be ng gamble in a casino, they will go (which is allowed under the
Jaydev Mody, 64, has on cricket. While 12 states and play matka [an illegal form current policy), a water park,
assiduously built a ₹800-crore allow lo ery in India and six of lo ery] and other forms of banquets, and retail on this
gaming empire— under the allow horse racing, only two totally unregulated games, land,” he adds. An electronic
‘Del n’ brand—in a country States - Goa and Sikkim - and which can have more serious casino is much like a tradi onal
where gambling is o en one Union Territory - Daman - repercussions,” he says. one with the addi on of a few
looked at as a social taboo. allow casino gaming. Moreover, Del n’s casinos screens where games like
have monitoring systems Blackjack can be played
Being a poli cal hot potato, $60billion - The size of the which can track if someone has digitally.
especially during elec ons, gaming industry in India. Only a habit of coming in month
a er month and losing sizeable

fada.in | December 2020 F A D A Journal 31

Business Achievers

Despite such constraints and des na on, and in 2019 it is ₹500 crore of cash si ng on Delta is also willing to build a
local compe on (its nearest picked up a 19.5% stake in Delta’s books and the business hotel in Nepal to control the
compe tor, the Pride Group, fantasy sports site HalaPlay, in throws out around ₹225 crore market and clientele there.
has two offshore and two land which it co-invested along with of cash each year. In addi on to
casinos in Goa), Delta is the gaming company Nazara this, Delta has assets worth Though Del n has two hotels
only large, listed player in this Technologies. “These are all around ₹400 crore, including in India—Goa and
space and it is growing each connected businesses and land banks, which it can Daman—Mody doesn’t fancy
year. Between FY16 and FY19, have synergies with our mone se. That’s perhaps why, himself as a hotelier and says
Delta’s revenue has doubled, exis ng opera ons,” Mody despite the slowdown, Mody is that he, in fact, doesn’t like
and net profit has quintupled. says. Adda52, for instance, had unruffled when he meets the hotels business. For him,
The company’s Ebitda margin a top line of around ₹170 crore Fortune India at Delta’s hotels are just a necessity to
has steadily improved from in FY19 as compared to ₹54 headquarters in Mumbai’s control and retain his
33.55% in FY16 to an crore in FY16. The online Tardeo area. Business hasn’t clientele. Delta also wanted to
impressive 42.21% in FY19. gaming market is es mated to grown much in the current expand in Sri Lanka and had
be worth $1.1 billion by the financial year, which Mody acquired land near the
In India, Delta runs four casinos end of 2020. expects will see Delta report a Colombo airport, but the
in Goa, one in Sikkim, and a top line similar to what it did previous government had
hotel each in Goa and Daman. “Delta has built a great last fiscal. This also reflects in restricted gaming licences to
The Del n Daman was built consumer business at a me the market capitalisa on of the two operators who
a er the government agreed when gaming—physical and the company, which has fallen currently run casinos there.
to issue a gaming licence if online—has become a real around 48% between February
someone built a five-star hotel thing,” says Rakesh 2018 and January 2020. The With a new government in Sri
in the Union Territory. But Jhunjhunwala, who owns a company’s current market cap Lanka, Delta wants to try its
when Delta did that and went 7.5% stake in the company and stands at ₹4,129 crore, as of luck again since a presence
to the government for the sits on its board of directors. February 26, 2020. there would help it cater to
gaming licence, the Responding to the cri cisms clients from India’s southern
government dragged its feet levelled against the gaming But Mody, who also holds a states such as Karnataka,
without offering any business in India, majority stake in the FC Goa Kerala, and Tamil Nadu. Does
explana on, Mody says. The Jhunjhunwala says that any football team that plays in the the interna onal push mean it
ma er is currently in court. change brings about contempt Indian Super League, is plans to enter tradi onal
and opposi on, but at the end confident that the market will casino markets like Las Vegas,
To work around the challenge of the day Indians will gamble. eventually reward Delta for its Atlanta, or Singapore?
of se ng up new casinos in “It [gambling] is a part of our business vision and execu on Unlikely, Mody says. “We can
India, Delta picked up a 30% culture da ng back to the skills. A key future strategy for acquire a hotel and casino in
stake for $10 million in Essel Mahabharata,” says the company, towards this Vegas for a couple of hundred
Groupbacked Jalesh Cruises in Jhunjhunwala, o en referred end, is to expand million dollars if we want to.
2019. The deal gives Delta to as India’s Warren Buffe . interna onally. In February, But we best understand the
exclusive access to run casinos “The key to being successful is Delta opened its first casino Indian players and devise
in all cruise ships operated by to run the business in a outside India in games around them. And if
Jalesh (the casinos are thrown responsible manner and be Kathmandu—its first step there is no India element, we
open to customers once the conscien ous.” towards going interna onal. won’t enter a market just for
ship sails out into interna onal The casino is part of a new the sake of it,” he says.
waters). “We are very strong on hotel that Marrio recently
compliance and professionally opened in Nepal’s capital city. Mody, who is passionate
Also, with online run,” Mody says. “We aren’t a Mody says that he wants to about horses (he owns over
gaming—including skill-based one-man opera on like some control the gaming market in 50) and wagers more on the
games such as poker, rummy, of our compe tors. We have a Nepal, much like he controls it racecourse than in casinos
and fantasy sports that can be plan in place, cash on our in Goa. “The plan is to grow these days, says he is a
played for real books, and no debt.” there and a ain market “controlled gambler” and
money—catching on fast in leadership in three years. We hates losing money like all
India, Delta has branched into CASH-RICH AND DEBT-FREE is want to have four to six casinos good Gujara s. Good thing
this space too. In 2017, Delta an enviable posi on to be in, and be the largest brand in the casino business is
acquired Adda52.com, India’s especially given the current there,” he says. If needed, that here the house always
largest online poker business environment. There wins.

32 F A D A Journal December 2020 | fada.in

Automotive Technology

TURBOCHARGING

THE INDIAN AUTOMOTIVE INDUSTRY NOW!

Helping Indian automakers navigate the immediate challenges of the pandemic and build
future resilience.

PREPARING INDIAN AUTOMAKERS FOR THE
“NEVER NORMAL”

No produc on, no sales. Indian automakers saw their bleakest
April in decades this year when produc on tumbled from 2.19
million units a month to zero and sales plummeted to zero.
COVID-19 had brought everything to a complete halt.

Even before the pandemic, Indian automakers were grappling
with falling demand as the economic slowdown took its toll. Add
to it, the challenges from connected, shared and electric mobility
and the transi on from BS-IV to BS-VI fuel emission norms. While
recovery will be even more difficult now with the pandemic, we
believe the industry can s ll take ac ons to outmaneuver
uncertainty. How? By rapidly responding to the current
disrup ons and strengthening opera ons to prepare for the
“never normal.”

fada.in | December 2020 F A D A Journal 33

Automotive Technology

HITTING A
ROADBLOCK

But first, let’s evaluate the unprecedented disrup on caused 03 LIQUIDITY CRISIS Struggling to meet fixed cost and
by COVID-19: working capital requirements,
Indian OEMs have resorted to
01 SUPPLY CHAIN DISRUPTED salary cuts, late payments to
vendors, hiring freezes, and cost
The pandemic broke the global SALES CRASH cu ng in travel, infrastructure and
automo ve supply chain. It was capital expenditure.
crippling for India since many OEMs
depend on China for 27% of their A er crashing almost 45% in March
automo ve parts imports and have 2020 as compared to 2019 and
no alterna ve sources for inputs. plumme ng to zero in April, sales
Restric ons on transport of have revived to some extent.
materials during the lockdown made 04 However, the June numbers are s ll
ma ers worse. 50% lower than last year for most
Indian OEMS. It’s a blow many dealers
02 MANUFACTURING SHUTDOWN are not being able to sustain and
more than 275 of them have shut
OEMs and component makers in shop.
India had to pay for losses to the tune
of US$305 mn for every day of plant
closure. While Indian OEMs are
gradually restar ng opera ons,
produc on is likely to contract by
8.3% in 2020 with rising cases of
COVID-19 and lack of manpower.

SHIFTING GEARS: Boost liquidity
“NOW AND NEXT STEPS”
Verify credit lines with major banks and leverage them to meet
So, how can automo ve companies get on the road to liquidity needs. Establish a working-capital crisis mode that
recovery? It’ll take a holis c approach focused on dealing priori zes payment obliga ons and a fixed-cost emergency
with the current crisis and building resilience for the future. mode that op mizes opera ons and personnel costs. Consider
We recommend that automakers step on the gas to: using AI and Blockchain in treasury management for real- me
cash flow overview and forecasts. Also, consider shi ing your
Build supply chain resilience business model from wholesale to retail and work with dealers
on inventory op miza on to free up working capital. Lastly,
Evaluate the risks and create transparency to prepare, adapt or iden fy other avenues to support dealers.
adjust to shortages or other challenges. Leverage big data,
intelligent systems and connected ecosystems to do so. Mobilize Drive sales
a control tower to orchestrate and configure the risk response,
focusing on agility. And, make risk mi ga on part of business as Digital channels emerged as the only way to drive customer
usual. engagement during the lockdown, but physical interac on will remain
a key part of the auto industry’s sales process. Instead of trying to
Accelerate manufacturing “force” the complete sales transac on online, focus on nurturing
brand loyalty by crea ng updated and dynamic digital content on
Keep in close contact with suppliers to ensure produc on can be highly relevant pla orms. Establish a clearly structured omnichannel
ramped up quickly when the market begins to recover. Put framework to ensure visitors and leads are directed to the right
workers’ safety first. Some Indian carmakers are already moving productandface-to-faceinterac onattheright me.Usetargetedand
in the right direc on by monitoring employees’ health using interac ve engagement online to increase poten al customer base,
mobile apps, limi ng employees in office areas to just 50%, and brandloyaltyand,mostimportantly,salesconversion.
arranging for buses and staggered arrivals for employees. What
next? Embrace industrial IoT to drive efficiency and prepare
future shock protocols to build resilience.

34 F A D A Journal December 2020 | fada.in

Automotive Technology

Here’s what auto companies must do to turn today’s Ÿ Enable control tower setup for fleet; provide digital
challenges into meaningful change. interven on as a service to monitorfleet profitability.

Think value for the customer Ÿ Consider value-focused offerings like up me services and
overhead cost reduc on for large fleets; target aggregators
Ÿ Shi the opera ng model from selling products to with a service value proposi on.
services; build one-stop servicing and maintenance
through a robust service network; consider Uberiza on of Think products that show you care
service capability.
Ÿ Focus on in-car offerings like an -microbial surfaces, self-
Ÿ Focus on the entry segment and used/lease model por olio cleaning surfaces, cabin steriliza on tech and driver
to cash in on consumers’ preference for own vehicles due par on.
safety concerns.
Ÿ Increase R&D on health and hygiene solu ons for vehicles.

HIGHWAY
TO GROWTH

The road to recovery may be a long
one. However, mastering key
industry trends such as
digitaliza on can help Indian
automakers get back on track, at
speed. Transforma onal
projects—in par cular, building
omnichannel capabili es—are
cri cal. The key to winning the race
is not losing sight of the long-term
goals and new opportuni es, and
focusing on renewal by embracing
new, intelligent solu ons.

fada.in | December 2020 F A D A Journal 35

Leadership

What Should Business Leaders Learn From 2020?

MARTIN REEVES

Chairman

2020 was a year of rebound significantly defined as the ability to healthcare infrastructure, as
unprecedented exceeded expecta ons. In absorb, recover from, and our consump on, work, and
disrup on for business and fact, forecasts for almost all thrive amid shocks. 2020 has social lives moved online
society. When the crisis aspects of the crisis, from its shown that there can be a during the pandemic and
eventually resolves, we will length and severity to its very significant difference in digital infrastructure became
have the choice of either broader impact, have been companies’ ability to do so: cri cal—one o en heard
heaving a sigh of relief and dispersed, changeable and for example, the average gap refrain was “at least the
resuming our previous inaccurate. in total shareholder returns internet is s ll working.”
management protocols or between the top-quar le and
stepping back, extrac ng Business leaders need a bo om-quar le companies That isn’t just a stroke of luck
lessons and adop ng new broader strategy toolkit that within each industry in China however: the architects of the
prac ces. goes beyond the tradi onal was nearly twice as high as a internet designed it to
approach of point forecas ng year before. withstand a wide range of
What then are the lessons and episodic planning. This is shocks, such as a nuclear
business leaders should be especially true in mes of The Covid-19 shock was not a ack.
learning from 2020? severe crisis, but it also excep onal in this regard—our
applies more broadly in research shows that crises They did so by making the
1. Forecas ng and planning today’s dynamic and dispropor onately drive long- network highly redundant,
have severe limita ons. A er unpredictable business term out-performance in modular (one failure doesn’t
the ini al shock of Covid-19 environment. business. bring down the whole system),
set in, many economic and adap ve—principles that
forecasts predicted a very 2. Resilience is more The value of resilience was business leaders can also use
slow and difficult recovery. important than you think. evident well beyond business to boost their companies’
However, the pace of the Resilience in business can be in 2020. In contrast to resilience.

36 F A D A Journal December 2020 | fada.in

Leadership

3. Op mism is cri cal during this week with a very high 6. Organiza onal iner a is raising the level of ambi on
a crisis. Conven onal wisdom valua on. costly but not inevitable. for change.
holds that business Looking back, it seems
performance falls across the 4. Everything is connected to inevitable that Covid-19 7. The long term didn’t go
board during a crisis, the everything else. Within three would turn into a global away. Leaders spent much of
magnitude mostly depends months of the ini al outbreak pandemic—the disease is 2020 dealing with immediate
on what happens to your in Asia, ripple effects as far- highly contagious, it can have challenges, such as protec ng
industry, and opera onal ranging as collapsing global oil severe effects, and health and safety, shi ing to
discipline is the key to prices, a shutdown of nearly interna onal travel gave it remote work, and restoring
minimizing the damage. all live entertainment and a plenty of opportuni es to supply chains and sales
However, the evidence shows global recession were spread. But even though channels. But not only have
that one in seven companies observable. This was an those basic facts were known the pre-exis ng long-term
increases absolute out- extreme example of a trend rela vely early on, it was s ll challenges not disappeared,
performance in crises, that that was already treated as a localized issue for many have been become
some companies perform underway—poli cal, social, some me. Few treated the more important:
well in all sectors, and that economic and business disease as a major global
revenue growth, not costs, is systems are becoming more concern un l exponen al Ÿ Technological advantage
the primary driver of interconnected, and changes outbreaks erupted in mul ple has become even more
differen al success. in one part of the system can regions, even though seeing it cri cal, because the
Furthermore, because have effects at all levels. in advance and taking pandemic accelerated the
consumer beliefs and preemp ve ac on would have adop on of digital
behaviours o en shi during Business leaders therefore had significant benefits. technologies in business
crises, they be a good me for need to expand the
innova on—indeed, new boundaries of strategy. No The bigger a company gets, Ÿ Long-run growth
business forma on hit a record longer can they consider only the slower it tends to move con nues to face
high last quarter. what happens within their and the harder it is to reinvent demographic headwinds,
corporate walls and to their the business. But the shocks which may be exacerbated
Crises foreground the leader’s customers and compe tors; of 2020 also spurred many by Covid-19
duty of op mism. Key to being they need to understand large organiza ons to move
a company that emerges from shi s in the broader external more quickly than they might Ÿ Inequality and social
this disrup on stronger, is context and the poten al have imagined was possible. polariza on have been
seeing opportunity in implica ons. Companies around the world accentuated by the crisis
adversity sooner than others. shi ed to remote work in a
For example, AirBnB ini ally 5. Time is not linear. Even ma er of weeks. Ÿ Geopoli cal tensions and
seemed like a company though clocks ck at a Manufacturers across sectors uncertainty remain elevated
severely hurt by Covid- constant pace, the relevant revamped their factories to
19—demand for travel and produce cri cal health and Ÿ The urgency of dealing
accommoda on plummeted me for business is nonlinear. safety goods in a ma er of with climate change is
and it was forced to put IPO As Vladimir Ilyich Lenin weeks. And several greater than ever
plans on hold. However, famously said, "There are pharmaceu cal companies
because the company’s decades where nothing brought vaccines to market in a 2021 will bring new short-
pla orm can offer a more happens; and there are weeks ma er of months, much faster term challenges—some of
diverse set of where decades happen." than ever before. which can be an cipated,
accommoda ons and flex Examples of this in 2020 such as how vaccines are
more quickly than tradi onal included “two years’ worth of Now that they have learned distributed and how this will
hotel chains, it was able to digital transforma on in two how quickly their bo leneck the recovery of
mobilize to serve new demand months”, as Microso CEO organiza ons are capable of hardest hit industries. But
for longer-term stays at more Satya Nadella said, or seven moving, leaders need to these long term issues will
remote loca ons. As a result, years’ worth of e-commerce harness this ability in the quickly come back into focus
the company’s business growth in one year. To keep absence of an external crisis. too. Leaders who pivot back
bounced back rapidly, gained pace, organiza ons need to This will require avoiding to this agenda on mul ple
significant share against constantly sense when the complacency and crea ng a
compe tors and it went public context is shi ing and pro- sense of urgency, as well as me-scales and adopt an
ac vely shape new needs. agenda to address it will be
best posi oned to succeed in
2021 and beyond.

fada.in | December 2020 F A D A Journal 37

Opinion

5 Defining Moments in the CV industry in 2020

- Kaushik Narayan, CEO, Leaptrucks

This was expected to be a Defining moment 1: World collaborated with global connec vity and cruise
quiet transi on year. It Class technology made in technology leaders to control. Most importantly,
marked a long-awaited India minimise the learning curve. OEMs have been able to
environment-friendly, but The technology was adapted offer all these with the
highly complex transi on The year 2020 was expected to Indian condi ons. They same or be er fuel
from Euro 4 to Euro 6 to pose a challenge to the CV collaborated with suppliers efficiency in comparison to
standards. Li le did we industry. A transi on to locally and globally to make it BS4 trucks.
an cipate the impact of an significantly lower emission cost effec ve. Then they
invisible virus that brought BS6 trucks was scheduled for tested, learnt and re-tested Indian technology has come
the world to its knees, and April 1, 2020. Emissions in the technology in of age and we can be proud
the CV industry to a halt. As Diesel trucks & buses would simula ons, inside of the OEM Technology and
we exited a total lockdown, reduce by over 50 to 90%, sophis cated labs and on Product Development teams
the industry witnessed significantly reducing challenging road condi ons. developing best in class
drama at the Supreme Court pollu on from vehicle Thousands of technicians technology in India!
related to vehicle exhausts. To complicate were trained to handle the
registra ons. Small things, India would be all-new electro-mechanical Defining Moment 2: A virus
businesses and operators making the transi on in less technology at service centres that brought us down to our
struggled to pay their EMIs than a third of the me it took across the country. knees
and looked for interven on. Europe and China to do the
All through the crisis, we same. The results thus far have From newborns to the
were le looking for solu ons been stellar. BS6 trucks elderly, the year 2020
to keep our homes well While the odds were stacked offered by all OEMs have cannot be defined without a
stocked while we stayed against them, all OEMs spent performed be er than reference to Covid 19. Covid
home. a lot of me and energy in expected while complying le a las ng impression on
preparing for the transi on. with world class emission every industry in the
We summarise the year in 5 They invested heavily in standards. Trucks have economy. Mul ple
defining moments that technology (over hundreds of been built with a focus on countrywide lockdowns
marked the trials, crores each). They worked safety of drivers, provide brought the country to a
tribula ons and triumphs of closely with their parent improved driving comfort stands ll for over 2 months.
the CV industry. companies, their Joint and have best in class Only essen al goods
Venture partners or features like Bluetooth movement was allowed,

38 F A D A Journal December 2020 | fada.in

Opinion

specifically vegetables, March 31, 2020. OEMs, their Defining Moment 4: Timely Defining Moment 5: Our
fruits, milk, food items, Dealers and Customers were policy ac on to protect everyday unsung Heroes
pulses and FMCG. Over 90% well prepared to comply with Operators and Small
of the CV industry was the requirements. However, Businesses As the na on moved into a
paralysed. the total lockdown total lockdown, everyone
implemented by the Central As the government stayed at home to slow
As the lockdown was li ed, Government on March 25th announced a total down the Covid virus.
the economy struggled to get made this task challenging. lockdown, most businesses Healthcare workers focused
back on its feet. Operators As the central lockdown was across the country came to on saving people who had
struggled as trips were hard li ed, local restric ons a stands ll. With no contracted Covid. Everyone
to come by. When trips came con nued to plague smooth income to repay their loans, worried about the
by, drivers were hard to find opera ons across Road businesses went into panic effec veness of the supply
as migrant drivers had Transport Offices (RTOs) mode. The RBI swung into chain, possibly long queues
returned home. When they across the country. ac on and immediately in stores and the possibility
found both, they had to deal Registra on of pending BS4 announced a 3-month EMI of riots in store. It turned
with local and interstate Commercial Vehicles were moratorium to offer out that we had nothing to
lockdowns, ever changing further delayed. support. The recovery was worry about.
Covid tes ng requirements significantly slower than
and the general fear of The Supreme court an cipated. Businesses Logis cs operators and
contrac ng Covid-19. From a intervened to ensure that struggled to gain drivers ensured delivery of
viability perspec ve, diesel OEMs, Dealers and momentum. The RBI once milk at dawn, vegetables,
prices had gone up by over Customers were complying again intervened and fruits and essen al goods in
21% and Freight rates went with the law. Due to the proac vely extended the stores and mely deliveries
down by over 10 to 20% number of players involved, a moratorium by an to urban and rural homes.
making survival challenging. lot of confusion was created addi onal 3 months. This They braved the fear of
and the registra on of many gave businesses me to Covid as they kept the
Things have fortunately vehicles was in limbo. The recover and become supply chain moving. They
go en progressively be er Federa on of Automobile healthier before Loan EMIs kept the country motoring
for the CV industry. Freight Dealers Associa ons (FADA) re-started again. through our darkest days,
rates have almost touched stepped in to fill the Void. feeding our bellies with
pre-Covid levels in some They were the voice of The mely and proac ve food and our souls with
routes since October. Diesel reason for Dealers, OEMs and ac on by the country’s hope.
prices have so ened and Customers as a single point of Central bank provided many
bookings are improving. contact to clarify all the Logis cs Operators & SMEs Logis cs Operators and
concerns of the Supreme the lifeline to survive a Drivers were our unsung
While Covid nearly broke the Court. FADA used data poten al economic disaster. industry heroes of 2020.
back of the industry, it also collated from across The absence of mely
brought out the industry’s hundreds of dealers spread interven on would have led While 2020 was a
indomitable spirit. across the country to allay to significant number of challenging year, these 5
the fears of the Supreme defaults across operators moments defined the
Defining Moment 3: An Court. They worked closely and structurally impaired resilience of the CV
Associa on rising to the with the RTOs to ensure that the opera ons of many of industry. In mes of crisis
Occasion the decision was the na on’s Banks and like the one we faced in
implemented uniformly with NBFCs. 2020, there were many
In order to ensure a smooth minimal suffering for more moments that were
transi on to BS6 technology, operators. The RBI was our Johnny on noteworthy that did not
the Supreme Court and the the spot for the most make the list. We look
Central Government had laid FADA rose to the occasion to deserving entrepreneurs in forward to your comments
down clear rules. be the voice of reason at a the country. on any defining moments
Registra on of BS4 vehicles we may have missed in our
was to be completed by me of crisis. ar cle.

fada.in | December 2020 F A D A Journal 39

Opinion

Electric Two-Wheelers Witness Tepid Growth Despite Govt’s Subsidy,
Near-Term Outlook Largely Remains Unchanged: ICRA Survey

• Under FAME-II scheme’s three-year tenure, FY2020-FY2022, e-2W sales have been only 2% of the targeted
10 lakh unit sales as on Sept’ 30 halfway mark

• ICRA expects 15-17% Y-o-Y contrac on in domes c wholesale 2W volumes in FY2021, amid an evolving
pandemic situa on, persis ng health concerns and economic uncertain es

The demand and volumes of The FAME-II, scheme aimed c u r re nt c h a l l e n ge s a n d same which could be a

electric two wheelers (e- to push faster electric vehicle possible drivers for faster e- possible reason for their

2W)s have witnessed a very (EV) adop on crossed the 2W penetra on. The key ineligibility for claiming

lackadaisical growth in recent halfway mark of its three- findings were as under: the subsidy.

years and despite the year tenure (FY2020- • Nearly 50% of the • A third of the walk-in
government’s thrust on FY2022), on September 30, dealers men oned that • customers lack
adop on of electric vehicles 2020. However, it has e-2W sales had declined awareness about the
(EV). Despite an managed to achieve only 2% post FAME-II, as the financial incen ves
unprecedented demand of its target (out of covering number of models offered by the
shock caused by the 10 lakh e-2Ws) sales during eligible for subsidy Government on e-2W,
pandemic, the outlook for the period. under FAME II have while the rest have
the e-2W remains largely declined, indica ng the limited understanding.
unchanged in FY2021 due to Commen ng on this, Mr. impact of stringent Apart from higher
a low base. As per the Shamsher Dewan, Vice- qualifying criteria). Only upfront cost of an e-2W,
findings of a na onwide President, ICRA, says, “The e- e-2W with advanced (i.e. the poten al customers
survey of 16 e-2W 2Ws segment was expected Lithium-ion ba ery are also concerned
dealerships in November, the to witness faster penetra on based) are eligible, about their durability
stringent eligibility criteria among all segments of the resul ng in all lead-acid and a er sales services;
set for claiming the subsidy automobile market, given ba ery-based e-2W the Government and the
under the second phase of the favourable economics sales (cons tu ng 70% OEMs need to step up
Faster Adop on and and limited reliance on a of models available in and invest in crea ng
Manufacturing of Hybrid and widespread charging the market today) being customer awareness
Electric Vehicles (FAME-II), infrastructure. However, e- excluded from claiming towards EV technology,
GoI’s flagship scheme, have 2W sales vis-à-vis targets set any demand incen ves. tax benefits, financing
been a deterrent – mainly under FAME II have been op ons etc.
due to a minimum tepid so far, with the same Further, the requirement
localisa on requirement and cons tu ng less than 1% of for mee ng a minimum Over 80% dealers in the
exclusion of lead-acid based total two-wheelers (2W) sold 50% localised content survey indicated that
e-2W for subsidy. In addi on, in FY2020 in India. While the criterion in a phased dominant e-2W
lack of consumer awareness e-2W sales reported a 21% Y- manner is tough as Li-ion customers are those
(regarding Government o-Y growth to 1.5 lakh units in ba ery accounts for 40- who are looking for a
subsidy), low acceptability FY2020 (first year of scheme) 50% of the overall cost of second 2W for the
led by lack of product the number of e-2Ws which the EV and is the most household, mainly for
knowledge and a er-sales availed FAME-II subsidy expensive component in kids and women. With
service concerns have been plummeted.” EVs. Due to lack of schools and colleges

dominant reasons for the ICRA research was done to adequate domes c shut because of the

s c h e m e ’s l a c k l u s t r e understand the ground supply, most of the pandemic and limited
OEMs are impor ng the non-essen al
performance. reali es regarding the

40 F A D A Journal December 2020 | fada.in

Opinion

movement, it stands to increase (>30%) in ICE faster EV adop on. Most Telangana, and the Central

reason then, that ownership cost over of the state EV policies Government’s decision to

purchase of a second past 2 years has reduced h a v e f o c u s e d o n allow sale of EVs without

vehicle has been the upfront cost d e m a n d c r e a o n ba ery, could push growth

deferred in the current differen al with Li-ion through reduc on in in the near-to-medium

fiscal. based e-2W. u p f r o n t c o s t o f term. However, ICRA

• Most consumers • 44% respondents ownership by offering a expects 15-17% Y-o-Y
combina on of contrac on in domes c 2W
con nue to prefer low believed that subsidies, registra on volumes in FY2021, amid an
tax and road tax waivers evolving pandemic
cost-low range lead-acid improvement in ba ery etc. and clear transi on situa on, persis ng health
dates for e-2W concerns and economic
ba ery powered e-2Ws technology and presence migra on for delivery uncertain es.
services/ e-commerce
even when FAME-II of more par cipants (and players etc. In H1 FY2021, the actual 2W
wholesale sales volumes
demand incen ves are models) has helped in

available only for expanding the e-2W

advanced ba ery based market. This is a

(i.e. lithium-ion (Li-ion) promising trend.

e-2Ws. Low-speed lead- • O v e r a l l r e s p o n s e were 38% lower on a Y-o-Y
ba ery based e-2W are • N e a r l y 8 0 % o f t h e
dealers also believed i n d i c ate s t h at m o st basis.”
that more financing
exempted from RTO op ons could drive faster dealers (80%) expect ICRA notes that while the
registra on, driving adop on. Dealers fla sh to moderate prac cality behind the
licence and helmet reported that 20-30% of growth in e-2W sales in FAME-II policy target of 10
requirements; this adds FY2021, albeit on a low lakh e-2Ws by FY2022 could
to their appeal. base. While interest in
their e-2W sales are e - 2 W a m i d t h e be debated at this juncture,
However, lead-acid
currently financed; this is
ba eries have limited p a n d e m i c h a s the Covid-19 pandemic has
lower than 40-50%
life, and lack proper end increased, conversion been an unpredictable
financing enjoyed by
of life recycling facili es into sales remains to be variable which has altered

(which is not conven onal 2Ws in seen. all the best laid out plans.

environment-friendly); India. Greater financing Although the increased

leading to the avenues and rise in Adds Mr. Dewan, “In H1 preference for personal
Government’s decision consumer awareness FY2021, the high-speed e- mobility, to ensure social
to dis-incen vise the could propel faster 2W reported a 25% Y-o-Y distancing, bodes well for
same. adop on. decline, primarily a result of 2W sales in the near-term,
the pandemic-led
• N e a r l y 6 0 % o f t h e • A r o u n d 5 0 % o f t h e lockdowns. However, the the demand for e-2Ws could
customers are op ng for r e s p o n d e n t s s a i d sales data released by SMEV be impaired as consumers

lead-acid based e-2W, interest in e-2W for the month of September face income uncertain es.
because of lower increased a er 2020, which reported a 72% Nonetheless, the
upfront costs vis-à-vis Li- announcement of the Y-o-Y increase in sales of Government’s thrust on
ion powered e-2Ws. EV policies by select high-speed e-2W, augments adop on of EVs, increasing
Significant upfront cost states, which sweetened the posi ve expecta ons of awareness towards public
savings in Lead-acid the deal in select the dealers. The industry is health and clean energy
based e-2W a ract the markets, like Delhi. banking on pent-up demand con nue to favour EV
price sensi ve Indian Demand incen ves are from H1 FY2021, to get adop on in the long run.
consumers. Consumers currently crucial to sway realised in the fes ve Mul -level policy support
lack awareness that customers to e-2Ws and season. (demand incen ves) and
running costs of e-2Ws hence, the financial

yield significant savings incen ves under the A n n o u n c e m e n t o f E V policy push (firm transi on

over ownership period. state EV policies provide policies by states and Union date) will be impera ve for

Also, a considerable incremental impetus for Territories like – Delhi, the same.

fada.in | December 2020 F A D A Journal 41

Perspective

Driving Resilience and Profitability through Sustainability

The COVID-19 crisis has not While the world of business is are nowhere close to achieving
only threatened lives and no stranger to the concept of the target of limi ng global
livelihoods but also thro led sustainability, the ques on is wa r m i n g to b e l ow 1 . 5 ˚C,
whether enough is being done implying that there is a stark
the world’s social and in greening our world, building disconnect somewhere.
resilience and mi ga ng the
economic structure and climate risks that lie ahead. A quick diagnosis reveals two
glaring issues. Firstly, it is an
reminded us just how The growing disconnect innate human trait of not
endeavouring to make
vulnerable we are in the face of Today, sustainability is the changes for the be er unless
hallmark of almost every large the situa on is dire. The
nature’s fury. We have now business and a key area of current physical shock of the
interest amongst stakeholders. pandemic and recent power
realised that it takes just one With focused a en on on outage in Maharashtra are
sustainability goals, many sobering reminders for the
black swan event to bring the organisa ons have an array of business ecosystem to
green cer fica ons and improve its sustainable
economy to a grinding halt. milestone achievements to mindshare and ability to
their credit. Their ini a ves tackle portentous events.
The pandemic has bequeathed are credible, quan fied and Today, it is largely the
showcased in annual pandemic that is commanding
upon us several lessons that sustainability reports. our a en on, but soon
Notwithstanding their ac ve enough, it could be the The
underscore the cri cality of contribu ons, we as a planet

sustainability. Ground reality
RAMNATH VAIDYANATHAN s h o w s t h a t r e s p o n s i b l e
General Manager and Head - o r g a n i s a o n s w i t h
Environmental Sustainability, sustainability embedded over
Godrej Group
the years within the core of

their business strategy have

been able to cope be er and

somewhat blunt the brutal

force of adversity with greater

stoicism.

42 F A D A Journal December 2020 | fada.in

Perspective

COVID-19 crisis has not only wa r m i n g to b e l ow 1 . 5 ˚C, place (and price) going standards of sustainability. It
threatened lives and implying that there is a stark forward. There is a need for a needs to be pursued with a
livelihoods but also thro led disconnect somewhere. true water pricing framework genuine intent of bringing
the world’s social and for agricultural and industrial about a palpable change, even
economic structure and A quick diagnosis reveals two consump on. The defini on of it means taking ambi ous,
reminded us just how glaring issues. Firstly, it is an ‘green’ needs to be ar culated stretched targets rather than
vulnerable we are in the face of innate human trait of not and standardised for industries aiming for a low ceiling.
nature’s fury. We have now endeavouring to make to benchmark, measure and
realised that it takes just one changes for the be er unless quan fy the greening of their The pandemic has upended
black swan event to bring the the situa on is dire. The products and processes. our opera ng assump ons in
economy to a grinding halt. current physical shock of the profound and unexpected
The pandemic has bequeathed pandemic and recent power Industry forums and central- ways while cas ng a long
upon us several lessons that outage in Maharashtra are level campaigns need to push shadow of uncertainty over
underscore the cri cality of sobering reminders for the on raising consciousness and the future. Businesses have
sustainability. Ground reality business ecosystem to inducing consumer had to deal with situa ons that
shows that responsible improve its sustainable acceptance for green solu ons have never been explored
organisa ons with mindshare and ability to tackle that come at a premium. The before—such as remote
sustainability embedded over portentous events. Today, it is country is also having to deal working and labour shortages.
the years within the core of largely the pandemic that is with huge Transmission & Yet, businesses have had to
their business strategy have commanding our a en on, Distribu on (T&D) losses when make this model work for
been able to cope be er and but soon enough, it could be it comes to distribu ng energy. themselves, given no other
somewhat blunt the brutal the repercussions of climate The Electric Vehicles (EVs) choice. On the supply chain
force of adversity with greater change, the perils of which can market is not supported by the side, several organisa ons got
stoicism. well be 10 mes as severe. current infrastructure, in turn together to share logis cs
dissuading consumers from pathways, which they
While the world of business is Secondly, the situa on calls for migra ng to greener modes of wouldn’t have done
no stranger to the concept of systemic and policy changes, commute. otherwise. These have made
sustainability, the ques on is which need to happen at scale. corporates realise that merit
whether enough is being done For example, there is a The solu on lies in taking bold steps
in greening our world, building discrepancy between na onal towards thinking of a different
resilience and mi ga ng the and state-level policies when it Apart from top-level policy and way of doing things—as long as
climate risks that lie ahead. comes to something like systemic changes, it is now it improves efficiency and is
renewable energy. Also, sustainable.
The growing disconnect policies keep changing every me to honour and pursue the
few years, the uncertainty targets that have already been To illustrate, with increased
Today, sustainability is the then deterring private set for ourselves. A Public- automa on, the displaced
hallmark of almost every large investment. Policies should be Private Partnership (PPP) workforce can be upskilled for
business and a key area of uniform, consistent and clear, model can be explored, jobs of the future. With remote
interest amongst stakeholders. and suppor ve of private especially in the power working being the changed
With focused a en on on ini a ves. sector—renewable energy normal, 70-80 percent of
sustainability goals, many space and energy efficiency unnecessary commute can be
organisa ons have an array of Other challenges adop on, but there has to be avoided, resul ng in a
green cer fica ons and parity, consistency and a substan al reduc on in carbon
milestone achievements to The ongoing crisis has singular policy across states. emission. Important
their credit. Their ini a ves highlighted the need to revisit The situa on calls for interna onal conferences can
are credible, quan fied and our an quated labour laws. incen vising green ini a ves be held online, saving tons of
showcased in annual Policies that support at least, if not punishing fuel and the environment. All
sustainability reports. temporary and liquid labour “brown” performers. There these points in the direc on of
Notwithstanding their ac ve need to be framed to give the has to be consistency and looking at more efficient ways
contribu ons, we as a planet business the boost it needs. persistence in policies, tariffs, of working and conduc ng
are nowhere close to achieving Water, an indispensable documenta on and processes. business. In fact, in the long
the target of limi ng global resource, needs to find its Businesses should be judged term, sustainability
by transparent, open, global

fada.in | December 2020 F A D A Journal 43

Perspective

automa cally leads to sequestra on or offsets. The Industries, sustainability is not Reset, it’s not merely about
profitability. cost of adapta on is o en treated as a compe on. The having a ‘responsible halo’
much lesser than the cost of business roots for around a business; it’s about
Growth and sustainability go mi ga on. So, there is no collabora on in ma ers of being realis c, grounded and
hand-in-hand longer a trade-off between sustainability. Through its sincere in ma ers of
going green and growing Greener India ini a ve, it sustainability. The good news
Social and environmental business, and sustainability aspires to achieve zero waste is that almost 80-90 percent of
sustainability leads to long- has become a simple, viable to landfill, carbon neutrality, a sustainable behaviours can be
term profitability. To illustrate, and desirable strategy. posi ve water balance, 30 achieved at very low cost. It’s
if a business engages in zero- percent reduc on in specific
discharge manufacturing, then The decision of Microso energy consump on, and me to be honest and walk the
its investment in the process founder Bill Gates, to allocate a increased u lisa on of talk—to honour the larger
would automa cally result in significant sum of his wealth to renewable energy resources. commitment of mi ga ng
water-saving, and improved solving some of the world's climate change. The more
profitability over me. Also, an most intractable problems, is Conclusion sustainable a business
organisa on that invests in an example of work benefi ng becomes, the be er prepared
lower carbon pathways would social good. At Godrej As businesses scramble it is to face crises that are
save later in carbon towards ini a ng the Great lurking in the shadows.

Attention: Members

Engagement of GST Consultants

GST consultants – Ms Puloma Dalal and Dr Sanjiv Agarwal, based in Mumbai and Jaipur respec vely, have
been engaged by F A D A on retainership to help members deal with the complexi es of GST law and
procedures. They will, on reference made by F A D A, guide and give opinion on various issues rela ng to GST as
applicable to automobile dealers.
Federa on of Automobile Dealers Associa ons (F A D A) will forward the queries raised by members to
them for their opinion. While Ms Puloma Dalal and Dr Sanjiv Agarwal will, essen ally, give legal posi on
and clarifica on, supported by case law, on various GST issues raised by F A D A Members, those wan ng
to engage them as counsel, will have to pay separately as per terms that may be mutually agreed to.
Member seeking clarifica on or legal posi on related to GST as relevant to automobile dealer, may send
their queries to F A D A at [email protected]).

Engagement of CMVR Consultant

CMVR consultant - Mr Hans Kumar, Retd Additional Commissioner, Transport Department, Rajasthan is with
FADA on retainership basis. He is an authority on CMVR Rules and is also approached by MoRTH.
FADA will forward members concern regarding CMVR Act & Rules to Mr Hans Kumar for clarification and suitable
representation ,if any, to be made to the respective State Transport Authorities and to MoRTH where applicable.
Members are requested to send their queries at [email protected]

44 F A D A Journal December 2020 | fada.in



Consumer Case Studies

National Consumer Disputes Redressal Commission

JUSTICE DEEPA SHARMA 1) The present Revision Volkswagen Group Sales Complainant, there was
PRESIDING MEMBER Pe on under Sec on India P. Ltd. & Anr., RP no requirement on the
21(b) of the Consumer 567/2017 dated part of the Pe oner to
Skoda Auto Volkswagen Protec on Act, 1986 (for 18.03.2020, NCDRC ”, produce any document
India Pvt Ltd - Petitioner short “the Act”) is filed “Hyundai Motor India and hence, the Foras
challenging the order Limited vs. Surbhi Gupta & below have erred in giving
Versus dated 23.09.2019 of the Others, 2014 SCC Online the findings against the
State Consumer Disputes NCDRC 487”, “Classic Pe oner simply on the
M/s Meghana Redressal Commission, Automobiles vs. Laila basis that the Pe oner
Corporates Pvt Ltd & Anr Karnataka (for short “the Nand Mishra & Anr., I did not produce any
– Respondent(s) State Commission”) in (2010) CPJ 235 (NC)”, “S. evidence. It is further
Appeal No.2161 of 2011 Suncon Realtors P. Ltd. Vs. argued that the vehicle
Revision Petition No. 589 whereby the order dated Nissan & Ors., FA had already run for more
of 2020 07.06.2011 of the District 1744/2019 dated than 58,000 kms. by the
Decided on 24/06/2020 Consumer Disputes 20.08.2019 (NCDRCDC)”, date the Complaint was
(Against the Order dated Redressal Forum, Md. Hasan Khalid vs. filed and it is s ll
23/09/2019 in Appeal No. Bangalore (for short “the General motors India P. roadworthy and
2161/2011 of the State District Forum”) in Limited, 2018 SCC Online therefore, the finding that
Commission Karnataka CC/591/2012 was NCDRC 667”, “Maru the vehicle had suffered
confirmed and the Appeal Udyog Limited vs. Susheel with manufacturing
was dismissed. Kumar Gabgotra & Ors., defect is erroneous. It is
(2006) 4 SCC 644” and further argued that the
2. The present Revision “Easy Elevators India P. District Forum has
Pe on has been filed by Ltd. Vs. Nissan Motors & erroneously relied upon
the Pe oner, Opposite Anr. 2018 SCC Online an internet download. It
Party No.2 in the original NCDRC 1430”. is argued that the
complaint, alleging that impugned order whereby
the order of the Foras 3. It is further argued that the order of the District
below needs to be set the Respondent no.1, the Forum was upheld needs
aside as it suffers with Complainant is a Company to be set aside.
illegality and infirmity. It and since the Company
is submi ed that the Foras has purchased this car, it 4. I have given though ul
below have failed to take cannot be said that it had considera on to the
into account the fact that been purchased for arguments of learned
there was no expert personal use and Counsel and have also
opinion regarding the therefore, the perused the relevant
defect in the car and Complainant is not a record.
therefore, the finding that Consumer. It is further
the car was defec ve is argued that every me 5. The brief facts of the case
erroneous. Reliance has when the car had been are that the
been placed on “Maru brought to the service Complainant/Respondent
Udyog Limited vs. sta on, i.e., to no.1 had purchased a
Hasmukh Laxmichand & Respondent no.2, the car Skoda Fabia Ambientee
Anr., 2009 SCC Online was repaired and the car manufactured by the
NCDRC 74”, “Gopal Complainant had signed a Pe oner, Opposite Party
Aggarwal vs. Metro sa sfac on note. It is No.2, from the Opposite
Motors & Anr., 2019 SCC further argued that since Party No.1, the
Online NCDRC 754”, all the documents had Respondent no.2, the
“Amar Kumar Saraswat vs. been produced by the dealer for a sum of
₹8,76,057/- on 24th

46 F A D A Journal December 2020 | fada.in

Consumer Case Studies

January 2008. By the me 7. The District Forum has also taking money from the This view is fully
it had filed the Complaint, observed the following complainant within one corroborated by IV (2007)
it had been taken to the facts: year from the date of CPJ 1 (NC), 111 (2008) CPJ
service sta on for repairs purchase of the vehicle 107, III (2008) CPJ 17 (NC),
25 mes. The details of 37. The opposite party had electrical problems. III (2008) CPJ 32 (NC), 11
the repairs done by No.2-has admi ed in its Within one year two (2008) CPJ 468, II (2008)
Respondent no.2 are version and affidavit on months the vehicle had CPJ 308, IV (2008) CPJ 369,
men oned in the job cards 06.11.2008 the vehicle has several problems! how IV (2008) CPJ 130, III
produced by the been repaired by it and the could that happen? There (2004) CPJ 637, I (2006) CPJ
Complainant/respondent blower was replaced. Why is no answer. 196. Discussing or quo ng
no.1. No evidence has the opposite party has not elaborately judgment of
been produced by the produced the documents 39. Further the opposite Higher Court is prohibited
Pe oner in contrast to with respect to this service par es admits that by law in the regula on
the conten ons of the or job-card and any other regarding ABS, braking No. 18(5) of the Consumer
Respondent documents which are system, blower noise and Protec on Regula on
no.1/Complainant. The available with it. The AC malfunc oning, 2005; Quo ng these
finding of the Foras below opposite par es has steering hard, the vehicle judgments will only bulk
regarding defects in the admi ed that on has been brought to it on and bulge the records. This
car is based on these 24.04.2009, 24.06.2009, 29.01.2010, 08.02.2010, is also with respect to the
evidences, i.e., the job 17.08.2009, 29.12.2009, 22.02.2010, 03.03.2010, li ga on in the (2008) CPJ
cards which are admi ed 03.03.2010, 21.04.2010, 21.04.2010 and 111 (NC) and in SLP(c)
documents. It is clear that 01.09.2010, 21.09.2010, 05.05.2010. This itself 21178-21180 of 2009 by
the Respondent no.2 who 26.10.2010 the vehicle clearly goes to show that, the Apex Court dated:
did the repair job and is had been brought, to it for the vehicle had several 24.11.2010 in a case
authorised dealer of the AC malfunc oning and it manufacturing defects between Sri. C.N.
Pe oner did not file any has stated that it has within 27 days from the Anantharam -V/S- Fiat
Wri en Statement. There a ended to. Why the date of purchase of the India Limited and Another
is no evidence on record to concerned job-card and vehicle. Whether it is cited by learned counsel
show that these job cards the alleged materials, within warranty or a er for the opposite party.
are not genuine alleged documents were warranty; how could the
documents. Even the not produced by the vehicle develop these 41. The conten on of the
genuineness of these job opposite par es? This problems? There is no opposite party No.2 is that
cards is not disputed by itself clearly goes to show answer. they have no objec on to
the Pe oner. that on eight occasions get the vehicle examined
that too within one year 40. That means within a gap of by any expert and they are
6. The District Forum in its five months from the date two years the vehicle had ready for it. If the opposite
order dated 07.06.2011 of purchase of the vehicle been taken to the opposite par es had any iota of
had framed the following it had problems, par es for repairs more truth regarding this they
issues on the basis of the some mes more spare than 25 mes and the should have made an
conten ons of the par es. parts has been replaced, opposite par es has applica on seeking
The relevant paragraphs this itself clearly goes to charged Rs. 98,983/- for appointment of an expert
are reproduced herein: show that the en re repair and service charges. at the cost of the opposite
mechanism of the vehicle This clearly goes to show par es, got it examined
4. The points that arise was wrong it has that the vehicle had and given the report, but
for our considera on manufacturing defect. manufacturing defects. that has not been done.
are:- How can a new car The voluminous records
38. Further it is seen that on develop all these things produced by the
POINTS:- 08.02.2010 and in May- that too within a year from complainant establishes
2010 the vehicle had been the date of purchase. that the vehicle had the
Whether there is brought to the opposite Taking the vehicle for large manufacturing defect.
deficiency in service? par es. According to the number of me for repairs These records are the
opposite par es for within two years itself records of the opposite
Whether the electrical problems which proves that the vehicle had par es; per contra
complainant is a has replaced certain parts manufacturing defects.
consumer?

What Order?

fada.in | December 2020 F A D A Journal 47

Consumer Case Studies

opposite par es never about 58,000 kilometers in 1. The Complaint is relying on the job cards
produced even a scrap of a span of these two years, allowed-in-part. produced by the
paper to substan ate their which nullifies the Complainant has held as
claim. Even the job-cards conten on of the 2. The opposite par es under:
and other allied records complainant that the shall pay ₹4,50,000/- to
which are available with vehicle had any the complainant within 30 8. The District Forum
the opposite par es are manufacturing defects. days from the date of this noted that life span of
not produced. Hence an This is an untenable order. On receipt of the vehicle as 15 years and
adverse inference has to conten on. We are in amount the complainant vehicle had run 58,000
be drawn against the India. A person marrying shall surrender the SKODA kms. It appears the
opposite par es in this another person, without car bearing registra on complainant has taken
regards. what prevented knowing that the other No.KA-04-ME-8736 to the vehicle for service
the opposite par es from person is nagging, the opposite par es within frequently because of
seeking appointment of an person pulls on for some three days from the date manufacturing defect. In
expert to give their of receipt of the amount. the circumstances, it also
opinion? There is no me for a year, two or appears though some free
answer. three and when it becomes 3. The opposite par es are services are provided for 3
untolerable then the also directed to pay years and replacement of
42. The opposite party person goes to the court ₹2,000/- to the spare part, the fact
itself is the manufacturer and not otherwise. The complainant towards cost remains that vehicle
of the car therefore they same thing happened in of this li ga on. being taken to the
themselves are the expert; this case. The vehicle has authorised service centre
the opposite party would been purchased by the 4. Both the par es are also of the manufacturer, then
have get the car examined complainant, weighted for directed to submit the necessarily it speaks to
by their expert regarding two years pulled on the compliance report to this the fact that vehicle was
the allega ons made by vehicle for 58000 Forum with necessary defec ve. Materials
the complainant in kilometers, it does not documents within 45 days. speak to the fact
annexure-1 and 2 by the mean that the vehicle had problems arose during
complainant along with no manufacturing defects. 5. The opposite par es warranty period itself.
their records and taken his The problems are s ll shall send the amount as Complainant had taken
opinion and produce it exis ng. It is seen that ordered above in Serial vehicle for repair on many
before this forum. Even regarding the same model Nos.2 and 3 by way of D.D.
that has also not been of SKODA Fabia car Jyo to the complainant mes is not at all in
done. Hence an adverse Madan and 30 others had through registered post dispute. When such is the
inference has to be drawn given complaint to the acknowledgement due. situa on, Opposite
against the opposite opposite party and have Party/appellant should
par es. Thus it lies ill on agitated as seen from the 6. Return the extra sets have placed job cards to
the mouth of the opposite internet downloads filed by the par es to the indicate nature of repairs
par es to say that they are produced by the concerned as under effected by them on many
ready to get any expert complainant. None of Regula on 20(3) of the
appointed in this case. these things have been Consumer ’s Protec on mes. It is not explained
Nobody has sought the challenged by the opposite Regula on 2005. by appellant/Opposite
permission of the forum or par es. That mean this Party as to why they did
interven on of the forum model of the SKODA Fabia 7. Send a copy of this order not produce job cards
for the appointment of any is having manufacturing to both par es free of before District Forum. In
expert. Under these defect; it is not the one car costs, immediately. that view of the ma er, it
circumstances there is no but almost all the cars of corroborates say of
necessity that is required the same model. Hence we 9. The State Commission in complainant regarding
for appointment of an hold the above points Appeal a er re- repeated troubles of the
expert as rightly accordingly.” apprecia on and re- vehicle throughout which
contended. assessing the evidences on itself indicates about
8. The District Forum vide its record, taking note of the manufacturing defects of
43. The other conten on is order had issued the various defects the vehicle the vehicle. For repairs
that the vehicle had run for following direc ons: was suffering with and for more than ₹98,983/- has
which it was taken to been spent by the
service sta on for 25 mes
within a short span and

48 F A D A Journal December 2020 | fada.in

Consumer Case Studies

complainant and they are laboratory make an seized by the Pe oner. In 13. In Gopal Aggarwal’s case
ready to surrender the analysis or test, whichever fact, not even a single (supra), the facts are
vehicle. In the may be necessary, with a piece of evidence has en rely different. This
circumstances, it is to act view to finding out been produced by the Commission in this case
according to the order of whether such goods suffer Pe oner to contradict has observed that the
the District Forum.It is for from any defect alleged in the conten ons of the District Forum had failed
the manufacturer/ the complaint or from any Complainant/Respondent to decide the preliminary
appellant herein to pay other defect and to report no.1. Non-compliance of issue and the State
amount of ₹4,50,000/- its findings thereon to the Sec on 13(1)(c) of the Act Commission also
within two months from District Forum within a therefore it not fatal to this commi ed error in not
the date of this order, period of forty-five days of case. The findings on remanding the ma er
failing which, it shall carry the receipt of the reference which the Pe oner has back to the District Forum
interest at 6% p.a. It is for or within such extended relied upon were given on and it was on these facts
the complainant to period as may be granted the facts and that the order of the State
surrender the car. by the District Forum. circumstances of those Commission was set aside.
cases and the facts and This findings in this case
The above appeal is 11. From the bare reading of circumstances of this case are also not relevant on
dismissed. this provision, it is are en rely different. It is the facts of this case.
apparent that the District apparent that within a
The amount in deposit Forum is required to span of 3½ years ll the 14. In the case of Maru
shall be transmi ed to the obtain the expert opinion filing of the Complaint, the Udyog Limited vs. Susheel
District Forum for only when it is of the vehicle which was new Kumar Gabgotra’s case
disbursement. opinion that the defects as had to be taken for repairs (supra), the facts of the
men oned in the to the repairing centre of case clearly show that the
10. It is argued that there is no Complaint could not be Respondent no.2 for 25 Complaint relates to only
compliance by the District ascertained without one part of the car and
Forum of Sec on 13(1)© proper analysis or test of mes. This itself shows also the Complainant did
of Consumer Protec on the goods. In the present that the goods supplied not cooperate by giving
Act, 1986. Sec on 13(1)(c) case, there were 25 job were defec ve. the car for inspec on by
is reproduced as under: cards showing the repair the manufacturer. Hence,
and replacement of 12. The Pe oner has relied the facts in this care totally
13. Procedure on various parts of the car, upon the judgment in differ.
admission of complaint. — which were based on Maru Udyog Limited vs.
(1) The District Forum evidences on record filed Hasmukh Laxmichand 15. In Easy Elevators India case
shall, on admission of a by the Complainant along (supra). The findings in (supra), the Commission
complaint, if it relates to with its Complaint and this case are not relevant. had not gone into the
any goods,— were sufficient for the From the perusal of the merits of the case and
District Forum to facts of that case, it is those findings are not
(a) xxxxxxxxxxxxx determine the nature of apparent that the relevant.
the defects in the vehicle. manufacturer had moved
(b)xxxxxxxxxxxxxx The Pe oner a er an applica on for ge ng 16. Moreover, it is also clear
receiving the no ce of the the vehicle checked from that the Complainant had
(c) where the complaint Complaint wherein the an expert but it was not clearly stated that the
alleges a defect in the Complainant had alleged allowed by the vehicle had been
goods which cannot be that there were defects in Commission. The findings purchased for personal
determined without the car, had the were given by the use. No evidence has
proper analysis or test of opportunity to move an Commission taking note of been produced that the
the goods, the District appropriate applica on this fact. In the present vehicle which is car had
Forum shall obtain a for obtaining the expert case, no applica on for been used for commercial
sample of the goods from opinion to contradict the expert opinion has been purpose.
the complainant, seal it allega ons of the moved by the Pe oner
and authen cate it in the Complainant. That and therefore, the findings 17. In view of the above, the
manner prescribed and opportunity was not in this case are of no help Revision Pe on has no
refer the sample so sealed to the Pe oner. merit and the same is
to the appropriate dismissed in limine.
laboratory along with a
direc on that such

fada.in | December 2020 F A D A Journal 49

Membership

WE WELCOME OUR NEW

MEMBERS

No. Dealer Principal Name Dealership Name City State Franchise
1 Mr Baldev Singh Raina Peaks Auto Pvt Ltd Srinagar
Jammu & Kashmir Maru Suzuki

2 Mr Krunal D Amain Amin Automobiles Ahmedabad Gujarat Bajaj Auto

3 Mr Gurdeep Singh Batra Yashodha Motors Pvt Ltd Pa ala Punjab Ashok Leyland

4 Mr Rajat Agarwal Mahalaxmi Automobiles Siliguri West Bengal Atul Auto

5 Mr Amit A Magdum Tri-Colour Auto Pvt Ltd Miraj Maharashtra HMSI

6 Mr Saleem K Mohamedali Hydross Perumbadi Automo ves LLP Palakkad Kerala India Yamaha

7 Mr Sivaji Agarwal Mahesh Motors Balurghat West Bengal Hero MotoCorp

8 Mr Saravana Sekar G Vijai Earthmoving Equipment Chennai Tamil Nadu Tata Motors (CVD)

9 Mr Senthil Kumar Cag Enterprises Coimbatore Tamil Nadu India Yamaha

10 Mr Umesh Sangar Raunak Motors Bathinda Punjab Hero MotoCorp

11 Mr Kishore D Gopalan Himalaya Cars Yavatmal Maharashtra Maru Suzuki

12 Ms Pree Pallavi Patnaik Tushi Motors Pvt Ltd Cu ack Odisha Maru Suzuki

13 Mr Anuj Mehta Automiles Mumbai Maharashtra Hero MotoCorp

14 Mr Nalla Nakul Reddy Mahalakshmi Motorcycles (I) Pvt Ltd Adilabad Telangana HMSI

15 Mr Kanwarjit Singh Kochar Magic Auto Pvt Ltd New Delhi Delhi Maru Suzuki

16 Mr Hemant Vijay Borawake Borawake Auto Service Phaltan Maharashtra HMSI

50 F A D A Journal December 2020 | fada.in