Government to impose monetary penalties on scooter manufacturers who are involved in fire incidents

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After sending show cause notices to the electric scooter manufacturers for multiple fire incidents, the central government is now reportedly planning to impose monetary penalties for using unsafe batteries in those vehicles that led to such safety incidents.

While the government does not intend to take any severe action because the electric vehicle (EV) industry is still in its infancy, it believes that a penalty would “act as a deterrent for companies compromising on quality,” according to a Mint report. The development follows union minister Nitin Gadkari’s statement last month that his ministry issued a show-cause notice to the CEOs and MDs of escooter companies involved in the fire incidents, requiring them to explain why the relevant sections of the Motor Vehicles Act were not followed.

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Government to impose monetary penalties on scooter manufacturers who are involved in fire incidents

After sending show cause notices to the electric scooter manufacturers for multiple fire incidents, the central government is now reportedly planning to impose monetary penalties for using unsafe batteries in those vehicles that led to such safety incidents.

While the government does not intend to take any severe action because the electric vehicle (EV) industry is still in its infancy, it believes that a penalty would “act as a deterrent for companies compromising on quality,” according to a Mint report. The development follows union minister Nitin Gadkari’s statement last month that his ministry issued a show-cause notice to the CEOs and MDs of escooter companies involved in the fire incidents, requiring them to explain why the relevant sections of the Motor Vehicles Act were not followed.

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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