Prior to August 2019, there was no specific provision dealing with recalls in India. Absent a specific legal regime, vehicle manufacturers followed their own internal procedures and were guided by the ‘Voluntary Code on Vehicle Recall’ introduced by the Society of Indian Automobile Manufacturers (“SIAM Code”). As the name suggests, this Code was voluntary; and it contained guidelines to deal with cases where manufacturers or importers became aware of the existence of safety defects (as defined in the SIAM Code) in vehicles.
On 9 August 2019, the Indian legislature introduced some important amendments to the existing Motor Vehicles Act, 1988 (“MV Act”). One key amendment pertained to insertion of specific provisions dealing with the issue of recall of motor vehicles¹. On the same date (i.e. 9 August 2019), the new Consumer Protection Act, 2019 was also enacted, which too contained a specific provision dealing with recalls.
Please click here to read the full article by Sidharth Sethi and Avinash Das, published in BW Legal World.