Observing that health of the people is "far, far more important" than the commercial interests of the manufacturers, the apex court observed that automobile firms have declined to take "sufficient pro-active steps" despite being fully aware that they would be required to manufacture only BS-IV compliant vehicles from April 1, 2017.
The court in its five-page order also prohibited registration of vehicles, which do not meet Bharat Stage-IV emission standards, from April 1 except on a proof that such a vehicle was sold on or before March 31.
The auto emission norms are emission standards which are adopted to check the air pollutants released from any internal combustion engine equipment, including motor vehicles.
"We direct that on and from April 1, 2017, such vehicles that are not BS-IV compliant shall not be sold in India by any manufacturer or dealer, that is to say that such vehicles whether two wheeler, three wheeler, four wheeler or commercial vehicles will not be sold in India by any manufacturer or dealer on and from April 1, 2017," a bench comprising Justices Madan B Lokur and Deepak Gupta said.
The SIAM had earlier informed the apex court that companies were holding stock of around 8.24 lakh vehicles, which are not BS-IV compliant, including 96,000 commercial vehicles, over six lakh two-wheelers and around 40,000 three-wheelers.
"We all have to respect the Supreme Court verdict," SIAM President Vinod Dasari said.
Stating that as per government notification, sales of BS III vehicles were allowed after April 1, he said, "Now suddenly those BS III vehicles are banned. I find it quite frustrating that something like this happens."
Dasari warned of utter chaos in the next few days for the dealers and the finance companies which have sold BS III.
Environment experts said the transition is "critical", as the movement from BS-III to BS-IV could lead to substantial reduction in particulate matter emission.
Noting that air pollution has already emerged as a serious public health crisis in the Delhi-NCR region as well as in rest of the country, the experts said the 2017 Global Burden of Disease (GBD) report suggests India has the second highest number of early deaths due to particulate matter 2.5 in the world.
"On balance, in our opinion, the submission of the amicus deserves to be accepted keeping in mind the potential health hazard of such vehicles being introduced on the road affecting millions of our people in the country," it said.
"The number of such vehicles may be small compared to the overall number of vehicles in the country but the health of the people is far, far more important than the commercial interests of the manufacturers or the loss that they are likely to suffer in respect of the so-called small number of such vehicles," it said.
The court was dealing with the issue relating to the sale and registration of BS-III compliant vehicles which have been lying in stock with manufacturers and dealers, from April 1.
The manufacturers had argued that sale and registration of vehicles, which are not BS-IV compliant, should not be prohibited from April 1 and that they would not manufacture any vehicle not complying with BS-IV emission norms from April 1.
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