FADA Expresses Concerns Over Illegal Multi-Brand Two-Wheeler Retail Outlets

- According to FADA, some unauthorised MBOs are acquiring unregistered vehicles in bulk from dealers and reselling them to customers at discounted rates.
- FADA reports that the MBO’s indulge in tax evasion, issuing fake/undervalued insurance policies, delivering unregistered vehicles, and other illegal practices.
- It also says that these MBOs don’t offer any after-sales service.
The Federation of Automobile Dealers Associations (FADA) has expressed its concerns over illegal practices of unauthorised multi-brand outlets (MBOs) selling two-wheelers. Without naming any multi-brand dealers, FADA has said that the body has reached out to Delhi and Mumbai State Transport Departments over the issue, urging the authorities to take action against such dealers.
According to FADA, some unauthorised MBOs are acquiring unregistered vehicles in bulk from dealers and reselling them to customers at discounted rates. FADA also reports that these MBOs don’t offer any after-sales service, and also indulge in tax evasion, issuing fake/undervalued insurance policies, and other illegal practices. The MBOs are also reported to deliver the vehicles without registration and without helmets.
Multiple authorities spoke out supporting FADA against illegal MBOs. Kailash Gahlot, Transport & Environment Minister of Delhi said, “Delhi govt will not tolerate any such illegal activity or corruption. We are committed to take action against any such instance”.
Ashish Kundra, Principal Secretary cum Transport Commissioner, Transport Department of NCT Delhi said, “FADA has been working closely with the dealer fraternity and the government to maintain a healthy and lawful business environment in the region. A legal notice has been issued to all the involved parties, and their respective trade certificates have been put under the scanner."
Vivek L Bhimanser, Transport Commissioner, Maharashtra added, “All parties concerned have been given legal notice. We have cancelled the trade plate of dealers supplying vehicles to unauthorised Multi-Brand Outlets & have impounded vehicles stationed at such unlawful outlets. We have impounded over 6,000 vehicles, and trade certificates of over 50 dealers have been suspended for a week as of now”.
Also read: FADA Sales FY2023: Passenger Vehicle Sales Hit Record High; 2-Wheeler Sales At Seven-Year Low
Manish Raj Singhania, President of FADA said, “We have raised the issue of unauthorised multi-brand outlets (MBOs) in the 2-wheeler industry, which are not certified as bona fide dealers and sell unregistered vehicles without any trade certificates or after-sales services. This has caused many legitimate two-wheeler dealerships to shut down, making their businesses unviable. Such activities not only tarnish the image of dealerships but also harm brand image and values.”
FADA has also stated that it has reached out to Eknath Shinde, Chief Minister of the Government of Maharashtra, and the Transport Commissioners of Mumbai and Delhi regarding the issue. It has also reached out to Vinod Aggarwal, the president of SIAM (Society of Indian Automobile Manufacturers) requesting the organisation to raise the issue with concerned OEMs to amend their sales process.
FADA says that ensuring no supply of new/unregistered vehicles to unauthorised outlets “will have a great impact in eliminating the multi-brand outlet menace and building the credibility of the entire Auto Industry.” FADA also added that not only are the practices illegal, but they also damage the revenue generation causing “massive losses to the government and society and lead to significant loss of motivation among dealers, leading to greater loss of employment opportunities.”
Representational images
Latest News
car&bike Team | Jul 31, 2026Hero Vida VX2 Now Available With Fixed 3.1 kWh Battery, Priced At Rs 1.13 LakhUnlike the existing removable-battery variants, the new VX2 variant comes with a fixed battery and direct-plug charging.1 min read
car&bike Team | Jul 31, 2026Honda Cars India Appoints Toshiyuki Yanagisawa As New President And CEOYanagisawa replaces Takashi Nakajima, who is set to move to Honda's regional headquarters after completing his stint in India.1 min read
car&bike Team | Jul 31, 2026TVS Raider Doctor Doom Edition Launched At Rs 95,320TVS has expanded its Marvel-inspired Raider 125 Super Squad lineup with a new Doctor Doom Edition.2 mins read
Jaiveer Mehra | Jul 31, 2026Third-Gen Mercedes-Benz GLA Debuts With Internal Combustion, Electric Powertrains; EV Offers Over 600 Km RangeUnlike the new CLA and GLB, the GLA’s styling draws inspiration from the new GLC EV.1 min read
car&bike Team | Jul 30, 2026Maruti Suzuki's Hansalpur Plant Hits 10 Lakh Annual Production Capacity; First For Suzuki GloballyWith production beginning at its fourth plant, the Hansalpur facility can now build one million cars a year, making it the largest passenger vehicle manufacturing site at a single location in India.1 min read
Amaan Ahmed | Jul 30, 2026Made-In-India Honda Rebel 500 Set To Wear Sub-Rs 4 Lakh Price TagRegional BigWing dealer websites incorrectly listed a price of Rs 5.50 lakh for the Rebel 500, but that's not the price at which the locally-built model will be launched.1 min read
Bilal Firfiray | Jul 30, 2026Kia Syros EV Review: Best EV To Buy Under Rs 20 Lakh?The Kia Syros EV comes into the game with a modern design, spacious cabin, strong performance, decent range and an aggressive pricing. But could it become the new benchmark under Rs 20 lakh?5 mins read
Jaiveer Mehra | Jul 27, 20262026 Maruti Suzuki Brezza Facelift Review: Bestseller Joins The Turbo ClubWhile Maruti’s facelifts have always tended to bring subtle updates over the outgoing models, the latest Brezza brings some heavy updates under the skin, including a new 6-speed manual gearbox and, for the first time, a turbocharged petrol engine option.1 min read
Bilal Firfiray | Jul 24, 2026Honda ZR-V Review: Who Is It For?Honda has brought the new ZR-V to India as their current flagship offering. It’s a CBU, it’s a hybrid, and it’s here for a limited few. Who is it for though?1 min read
Girish Karkera | Jul 29, 2026Mercedes-AMG E53 4MATIC+ PHEV First Drive Review: Just What The Doctor OrderedThere are luxury cars and there are high-performance cars. But what if you want both for the price of one? Mercedes-Benz has a recommendation that promises to tread a fine line between the two – the second generation E53 with a twist.7 mins read
Shams Raza Naqvi | Jul 15, 2026Ferrari 849 Testarossa Spider Driven: Rs. 11.25 Crore Meets 1,000 bhpWe got behind the wheel of the most powerful convertible from Ferrari. What makes the 849 Testarossa Spider Special? We tell you.1 min read















































































































