Madras High Court stipulates time line for implementation of new CMV Rules, 1989 in the State

FADA successfully holds the 19th edition of Vyapar in Tamil Nadu

Dear Friends,

Over the past month, FADA has continued to advance the interests of our dealer community through proactive engagement, impactful learning initiatives, and firm legal action to safeguard our rights.

I am pleased to share that FADA has filed a Writ Petition before the High Court of Calcutta challenging the inaction of the Transport and Police Departments in implementing the Government of West Bengal’s circular dated 23.04.2025. The circular mandates strict action against unauthorised entities posing as Multi-Brand Outlets (MBOs) that have been selling two-wheelers at lower prices without valid insurance or registration, falsely claiming association with various manufacturers. Our petition seeks clear directions to ensure that no dealer without a valid Trade Certificate is permitted to store or possess any motor vehicle, particularly two-wheelers.

On the Compensation Cess issue, FADA has filed a Writ Petition before the Hon’ble Supreme Court of India challenging the legality and constitutional validity of Notification No. 9/2025–Compensation Cess (Rate) dated 17.09.2025. The petition contests the nil-rating of Compensation Cess on motor vehicles effective 22.09.2025, which has been done without providing any transitional or refund mechanism for utilising accumulated Compensation Cess Input Tax Credit (Cess ITC).

Further, FADA had filed a clarification application before the Madras High Court seeking amendment to its June 2024 order to specify a clear implementation timeline for CMVR provisions. The matter was heard on 24.10.2025, and the Hon’ble Court has now directed the State Transport Department to implement the CMVR Rules within two weeks of receiving the order—a significant and favourable development for dealers in Tamil Nadu.

In a similar effort, FADA has also approached the Jharkhand High Court seeking enforcement of the New CMV Rules, 1989 in the state.

During the month, FADA also marked an important milestone with the formal inauguration of the South Zone Office in Chennai. The office was inaugurated by Mr. V. Balakrishnan, IPS, Inspector General of Police – Administration. Additionally, the T.S. Santanam Hall, dedicated to meetings and training programmes on the first floor of the building, was inaugurated by Mr. Sharath Vijayaraghavan, Executive Director, Sundaram Motors. I was joined on this occasion by Mr Narasimhan, Sundaram Motors who also managed the day to day affairs of MV&AIA (one of FADA’s Founding Member Association which donated the South Zone property to FADA), members of the Executive Committee, the State Chairpersons of Tamil Nadu and Kerala, and several Regional Directors from Tamil Nadu, and CEO FADA- Mr Saharsh Damani making it a truly meaningful milestone in strengthening FADA’s presence in the South.

The new office will play a pivotal role in activating and engaging members across the five southern states—Tamil Nadu, Kerala, Karnataka, Andhra Pradesh and Telangana—through regular interactions, events, and training programmes designed for the growth and benefit of the dealer community. It will also enable us to address regional issues more efficiently and fast-track resolutions, ensuring stronger support and responsiveness to our members’ needs.

Friends, FADA Tamil Nadu successfully hosted Vyapar Tamil Nadu: From India’s Detroit to its Digital Destiny in Chennai. This was the 19th edition of Vyapar and the second edition in Tamil Nadu. We were honoured to have Dr. T.R.B. Raja, Hon’ble Minister of Industries, Government of Tamil Nadu, as the Chief Guest for the event. Vyapar Tamil Nadu featured 16 eminent speakers, 11 insightful sessions, 9 partners, and welcomed over 300 participants, making it a truly enriching and impactful gathering for the dealer community.

The Hon’ble Industries Minister, Dr. T. R. B. Rajaa, expressed strong support for developing a dedicated “Auto Row” on Chennai’s outskirts to reduce retail real-estate costs and promote a shared ecosystem of resources, workshops and knowledge among dealers. He highlighted that clustering boosts efficiency, collaboration and faster customer service. The Minister also emphasised Tamil Nadu’s focus on skilled workforce development, citing partnerships with global OEMs like Nissan Japan, customised training programmes through TNSDC and over ?2,500 crore invested in modernising ITIs with EV labs and advanced technology to create a pipeline of high-end technical talent.

In my Presidential address during Vyapar Tamil Nadu, I emphasised that Tamil Nadu has long been the pride of India’s auto retail sector, where “enterprise meets ethics and innovation meets industry.” Vyapar Tamil Nadu reflects the State’s remarkable journey from being the nation’s manufacturing powerhouse to emerging as a digitally driven mobility hub, leading in EV production, AI-enabled services, and sustainable practices. Since 1964, FADA has served as a vital bridge between the Government, OEMs and dealers, championing data transparency, model dealer agreements, skill development and inclusivity through initiatives such as the FADA Academy, WIF and GenX. We will continue to pursue key reforms, including effective CMVR implementation and justice on the Compensation Cess issue, to safeguard and advance dealer interests.

Let me take this opportunity to express my sincere gratitude to Dr T R B Rajaa, Hon’ble Minister, for taking time out of his busy schedule to address the dealer community, and to thank all our distinguished speakers for their valuable contributions - Mr Anurag Ranjan Chowdhury, President – Business, Rosmerta Technologies Ltd; Mr B R Muralidhar, CEO & Principal Officer, Sriyah Insurance Brokers Pvt Ltd; Mr Dinesh Agarwal, Regional Director, FADA Tamil Nadu & Partner, R K Motors; Mr Gokul Rajan, Chief Digital Officer, Hinduja Leyland Finance; Mr K Pandiarajan, Chairperson & Executive Director, CIEL HR Group; Mr Kasiviswanathan Panchatsharam, MD, TN Apex Skill Development Centre for Automobile; Mr Naveen Vashisht, Business Head Wheels, AU Small Finance Bank; Mr Rahul M Shankhar, FADA Legal Counsel & Managing Partner, Chamber 28; Mr Sai Giridhar, Vice President, FADA & Director, Saisha Motors Pvt Ltd; Mr Sanjay Pinto, Advocate – Madras High Court; Mr Sudarshan Sarma, Chief Business Officer – New Auto, Car Dekho Group; and Mr Sudipto Kumar Bera, Head – Bodyshop Business, India & Trade, PPG Asian Paints.

I would also like to extend my heartfelt thanks to all our partners for helping us make this event truly grand. Platinum Partner: Rosmerta Group; Silver Partners: AU Small Finance Bank Limited; CarDekho; PPG Asian Paints; & Bronze Partners: Sporada Secure India Private Limited; SSA Automotive Solutions; Sundaram Motors; Trio Solar Pvt. Ltd.; Wings Infonet Private Limited. Your support and collaboration played a vital role in the success of Vyapar Tamil Nadu.

I am truly grateful to the Executive Committee Members, the FADA Tamil Nadu Chapter Members, and the FADA Secretariat for ensuring this was a seamless and well-executed event.

As we move ahead, we will be organising Vyapar events in Kerala, Delhi, Gujarat, Jharkhand, Assam and Punjab in coming months. Vyapar continues to play a vital role in uniting the dealer community under one roof, encouraging the exchange of ideas and best practices, and enabling meaningful networking with key stakeholders across the automobile industry. I, therefore, urge all my dealer friends to participate wholeheartedly in these upcoming events and help showcase the collective strength of our community.

The Indian Highways Management Company Limited, under the aegis of NHAI and MoRTH, organised a Stakeholders’ Workshop on the Annual Pass in New Delhi, aimed at enabling hassle-free travel at toll plazas at a reduced cost. As dealers are the first point of customer interaction, they were invited to help create awareness about the Annual Pass and to communicate its benefits to customers, ensuring the programme’s success. Mr Sai Giridhar, Vice President, FADA; Mr Saharsh Damani, CEO, FADA; and Mr Shailender Luthra, Chairperson, FADA Delhi, were the distinguished speakers at the workshop. The event saw participation from around 40 dealers from Delhi NCR.

Going forward, FADA Academy is planning to organise an exclusive online session on “High Impact Telesales Skills – Turning Conversations into Conversions” with Ms. Avni Kailwoo, an acclaimed Sales Communication & Telesales Coach. This initiative reinforces our commitment to strengthening dealer capabilities through high-quality training. I urge all my friends in the industry to take full advantage of these learning opportunities.

Reverting to FADA’s state chapter activities during the month — FADA Delhi Chairperson, Mr Shailender Luthra, held a productive meeting with the Hon’ble Chief Minister of Delhi, Ms Rekha Gupta, and extended an invitation for her to be the Chief Guest at Vyapar Delhi. We are pleased to share that she has graciously accepted the same. The programme is currently being finalised, and further details will be shared soon.

As we move forward, FADA remains fully committed to safeguarding the business environment of our members, strengthening dealer capabilities, and ensuring our voice is firmly represented at every level of policy-making.

Together, we will continue to drive positive change for the dealership community across India.

Thanking you,

C S Vigneshwar
President - FADA