Last updated on July 22nd, 2023 at 05:05 pm
On December 22, 2022, the Ministry of Road Transport and Highways (MoRTH) issued a notification (G.S.R 901(E)) to promote ease of doing business and transparency in the sale and purchase of registered vehicles through dealers.
Gradually, the pre-owned car market in India has been gaining ground. This market has been further boosted in recent years by the advent of online marketplaces, which buy and sell pre-owned vehicles.
Many issues are being faced in the current ecosystem, such as: During the transfer of the vehicle to the subsequent transferee, disputes may arise in regard to third-party damage liabilities, difficulty in the determination of the defaulter, etc.
Chapter III of the Central Motor Vehicle Rules, 1989 has been amended by MoRTH to build a comprehensive regulatory ecosystem for the pre-owned car market.
1. A certificate of authorization has been introduced for registered vehicle dealers to verify their authenticity.
2. The procedure for intimation of delivery of the vehicle between the registered owner and the dealer has been detailed.
3. A dealer’s powers and responsibilities regarding registered vehicles have also been clarified.
4. In their possession, dealers have been empowered to apply for renewal of the registration certificate/ renewal of the certificate of fitness, duplicate registration certificate, NOC, and transfer of ownership of motor vehicles.
5. The electronic vehicle trip register, containing details of the trip undertaken, has been mandated as a regulatory measure. What is the purpose of the trip, who is the driver, what is the time, what is the mileage, etc.?
These rules will aid in recognizing and empowering intermediaries/dealers of registered vehicles, as well as providing adequate safeguards against fraudulent activities in the selling or purchasing of such vehicles.
