Concerns Have Been Raised by the FADA Regarding the Proliferation of Illegal Multi-Brand Two-Wheeler Retail Outlets

The Federation of Car Dealers Associations (FADA) has voiced its concerns on the unethical and maybe illegal practises of multi-brand name shops (MBOs) that are not permitted to advertise two-wheelers. Without naming any multi-brand dealers, FADA has reported that the system has reached out to the State Transportation Departments of Delhi and Mumbai above the challenge, encouraging the authorities to take action against these sellers. This report was made without naming any multi-brand dealers.

According to the Fair and Accurate Credit Transactions Act (FADA), certain unlicensed MBOs are purchasing unregistered motor vehicles in bulk from dealers and then reselling them to customers at reduced costs. In addition, the FADA has found that these MBOs do not offer any sort of after-sale services, and that they also engage in tax fraud, the issuance of phoney or cheap insurance policies, and other unlawful practises. It is also speculated that the autos provided by the MBOs do not require registration and do not come with helmets.

A number of agencies have expressed their approval of FADA’s stance against unauthorised MBOs. The Minister of Transport and Setting in Delhi, Kailash Gahlot, made the following statement: “The Delhi government will not tolerate any kind of unlawful exercise or corruption of any kind.” We are obligated to take into consideration any motion that comes from such an event.

“FADA has been functioning closely with the seller fraternity and the government to manage a balanced and lawful business enterprise environment in the area,” said Ashish Kundra, Principal Secretary and Transport Commissioner for the Transport Department of NCT Delhi. A valid observer has been granted to all of the parties concerned, and each of their trade credentials has been placed underneath the scanner.

In addition, Vivek L. Bhimanser, the Transportation Commissioner for the state of Maharashtra, stated, “All concerned parties have been provided with legal notice.” We have taken action to revoke the trade plates of dealers who sold automobiles to unlicensed multi-manufacturer shops and have seized motor vehicles that were parked at these types of illegal businesses as well. We have seized over 6,000 vehicles, and the business licences of approximately fifty dealers have been revoked for a period of seven days as of right now.