City
Epaper

FADA urges govt to bring in 'Franchisee Protection Act'

By IANS | Updated: December 4, 2019 00:10 IST

The Federation of Automobile Dealers Associations has urged the government to introduce a 'Franchisee Protection Act' to safeguard the interest of the customers, dealers and employees, in the aftermath of some auto manufacturers exiting India.

Open in App

"Auto manufacturers shutting shops and exiting India overnight now brings a strong urge to introduce 'Franchisee Protection Act' in the country to safeguard the interest of the customers, dealers and employees...," the FADA said in a statement.

Following bike manufacturer UM Lohia's exit from India, FADA requested the intervention of Prime Minister's Office over the issue. It has also approached various ministries.

UM Lohia is a joint venture between the Lohia Group and American group UM Motorcycles, set up in 2016 to manufacture and sell in India 'American' style motorcycles under the brand of 'UM Motorcycles'.

Earlier, FADA, through its counsel, had issued a legal notice to UM Lohia, calling upon them to redress all grievances of dealers and to take steps to ensure the maintenance and servicing of motorcycles already sold in accordance with the warranty terms and law.

"Having received no satisfactory response from the company as well as its owners, FADA now has requested the Prime Minister's Office, Ministry of Heavy Industry and Public Enterprises, Ministry of Road Transport & Highways and Corporate Affairs Ministry to urgently intervene in the matter," the statement said.

"The said incidence is now the 3rd one after General Motors and Man Trucks' sudden exit from the country."

As per the statement, the plagued relationship between the owners has caused huge losses to "dealers and has exposed them to unwarranted litigation from customers for whom, dealers are the face of the company".

"FADA would want to solve this issue amicably as it has done in previous two cases of OEMs exiting India. But failing to get any response from UML, there may be no other alternative but to take the final recourse including civil and criminal proceedings," it said.

( With inputs from IANS )

Open in App

Related Stories

NationalCPI-M and CM Vijayan upset with KV Thomas over his remarks

CricketSRH vs DC: Sunrisers Hyderabad Knocked Out of IPL 2025 Playoff Race After Rain Washes Out Match Against Delhi Capitals

Other SportsSeason-ending injury for Tottenham midfielder Maddison

NationalAssam CM Sarma 'challenges' Rahul over Cong MP Gogoi's 'Pak links'

Entertainment"Every singer is an actress": Chappell Roan admits encouragement from director John Waters for acting debut

कारोबार Realted Stories

BusinessReports on FM Sitharaman asking ADB to cut funding for Pakistan ‘untrue’: Centre

BusinessIndia, Italy explore ways to strengthen economic ties at ADB meet

BusinessIndia’s 1st mortgage-backed pass-through certificates listed on NSE

BusinessED attaches WTC group’s properties worth Rs 2,348 crore

BusinessSEBI mandates cooling-off period for directors moving between competing market institutions