CUTTACK: The Orissa High Court has struck down key provisions of the standard operating procedure (SOP) issued by the Transport commissioner on April 4, 2023, mandating registration and empanelment of vehicle location tracking device (VLTD) manufacturers in the state.
The judgment passed by a single judge bench of Justice SK Panigrahi held that the SOP was beyond the scope of the Motor Vehicles Act and the Central Motor Vehicles Rules (CMVR).
The court held that the Odisha SOP to the extent it mandates a separate empanelment/registration of VLTD manufacturers and imposes additional eligibility conditions and fees, is ultra vires of the Motor Vehicles Act and the Rules made thereunder. It added that such provisions violate the petitioners’ fundamental right to carry on business, since they are not backed by any valid law and fail the test of reasonableness.
The writ petition was filed by Triangle Info-tech Private Limited, a VLTD and emergency button manufacturer certified under Rule 126 of CMVR, along with its promoter and managing director. The company supplies AIS-140 compliant tracking devices to major automobile manufacturers, including Volvo-Eicher and JBM Auto, besides retrofitting systems in older vehicles.
While quashing the restrictive provisions, the court issued a set of directions. It clarified that manufacturers with valid AIS-140 certification and type-approval shall be permitted to supply and fit devices subject to technical integration with the state’s backend system.
The state, however, retains the authority to ensure data security, system integration and monitoring as per the central SOP. If any device or manufacturer fails to meet prescribed standards, the state may withhold activation or proceed in accordance with law, Justice Panigrahi said.
The petitioners had challenged the Odisha SOP on the ground that it imposed additional conditions such as local office requirements, turnover thresholds, performance securities and mandatory empanelment, despite the central government having already issued a statutory order on October 25, 2018, followed by the central scheme (January 15, 2020) and central SOP (February 22, 2021).
The court examined the statutory framework comprising Rules 90, 125-H and 129(1)(v) of CMVR, and noted that type-approval under Rule 126 and AIS-140 certification were sufficient for manufacturers to supply and activate VLTDs in public service vehicles covered under Rule 125-H.