Happy Diwali: Chandigarh lifts ban on two-wheelers after automobile dealers write to withdraw cases

“Our lawyer has submitted the same (withdrawal of cases) in the court. We have been told that once their counsel gives them a confirmation that we have withdrawn our cases, the relaxation would be given immediately and no ban would be in place,” said an automobile dealer on Wednesday morning, who was part of the meeting. He added that the Union Territory officers also agreed to review the entire policy on November 27.

Few hours after they conveyed the withdrawal of the cases, an order was issued by the Chandigarh Administration lifting the ban.

“Chandigarh Administration has decided that there will be comprehensive review of the E-Vehicle Policy. Therefore, all registrations of ICE vehicles will remain open till 27.11.2023,” said a statement issued by the administration.

The finance secretary of the Federation of Automobile Dealers Association, Ram Kumar Garg, told The Indian Express, “We are grateful to the administration for considering our demands. Many people were upset with the decision as bookings had been made for Dhanteras.”

Chandigarh Mayor Anup Gupta who had joined the meeting with BJP leaders spoke on behalf of the traders. He said that the decision of ban was unjust and should be reconsidered as it would impact several families. “I am happy that the administration has revoked the ban and it would be a joyous Diwali for everyone now,” he told The Indian Express.

The dealers had moved the Punjab and Haryana High Court on the Chandigarh Administration’s ban on the fuel-based two-wheelers, saying such a ban before Diwali affected their sales.

Over 700 vehicle bookings for Dhanteras on November 10 were blocked due to the ban.

There are, on average, 10 dealerships in the UT, and dealers said that all of them have around 70 bookings each with them, all stuck due to the ban.

The ban came into force last week as the UT stated that it completed registering 13,685 two-wheelers, including the extended target set by the administration for the current financial year, to encourage the sale of electric vehicles.

The decision impacted not only traders but many of those who had made bookings for the two-wheelers, keeping in view the festive season. The automobile dealers said most buyers were going to Punjab and Haryana to buy vehicles and get them registered there instead of Chandigarh.

Noting the festive season and protests by traders, the UT Administration, on October 18, allowed 1,609 more two-wheelers to be registered in the city for this financial year after imposing a cap of 12,076, according to the EV policy.

The traders had claimed that the ban would bring a “black Diwali” for them, and they would face losses worth Rs 2 crore per dealer on average for the stock already purchased. The dealers also said that around 2,500 families of its employees would be affected by the ban.