Supreme Court on Wednesday restrained them from selling BS-III vehicles from April 1 when BS IV emission norms would come in force.
A bench of justices Madan B Lokur and Deepak Gupta said that health of millions of citizens was more important that commercial interests of manufacturers and directed the government not allow registration of polluting BS III vehicles after March 31.
The court said that companies were all aware that BS-IV would come in force from April bit they chose to sit back and did not take any action to upgrade their technology to manufacture BS-IV vehicles.
According to the Federation of Automobile Dealers Association (FADA) data, nearly 20,000 dealers will be impacted financially due to the ban. Dealers tend to keep stock of vehicles with them and sell them when the demand for them rises.
But the bench said that it could not allow BS-III vehicles to ply on roads.