Automakers may now face a penalty of Rs 100 crore if they are found violating regulations. The proposed fine is part of recommendations made by a Centre-appointed panel of state transport ministers, which was given the task of suggesting stricter rules to frame the Road Transport and Safety Bill, to make significant changes to the Central Motor Vehicles Act, 1988.

Besides the Rs 100-crore penalty, the committee headed by Rajasthan Transport Minister Yunoos Khan has also recommended that carmakers must compulsorily recall vehicles if found to lack necessary safety features and for faulty designs, PTI reported. A penalty of up to Rs 5,000 for use of unauthorised components such as fog lights and roof-top carriers was also proposed. Dealers and vehicle body builders could face a fine of up to Rs 1 lakh per vehicle for such violations. Component dealers could also be fined up to Rs 1 lakh for selling critical vehicle safety components that are not approved.

The panel’s preliminary suggestions aim to negate the current penalties related to construction and maintenance of vehicles. At present, the fines stand at Rs 1,000 for the first offence and Rs 5,000 for subsequent offences. The final recommendations of the committee are expected to be ready this month.

It was earlier reported that the panel had suggested hefty penalties for traffic violations. Imposing a jail term of up to a year and a fine of Rs 10,000 on violators found driving with bogus licences was one of its recommendations. This sentence is a sharp rise from the current fine of Rs 500 and maximum jail term of three months. In case of juvenile drivers, it proposed that the guardian or owner of the vehicle be subjected to stricter penalties of up to three years in jail and a fine of up to Rs 20,000.