Centre drafts notification to promote ease of doing business in sale, purchase of registered vehicles

MoRTH has proposed amendments in Chapter III of Central Motor Vehicle Rules, 1989

September 15, 2022

Transport Ministry draft proposal to regulate pre-owned vehicles market

The Ministry of Road Transport and Highways (MoRTH) has issued a draft notification to promote ease of doing business and transparency in the sale and purchase of registered vehicles through dealers, with a view to regulating the pre-owned vehicles market in the country.

MoRTH has proposed amendments in Chapter III of Central Motor Vehicle Rules, 1989, to build a comprehensive regulatory ecosystem for the pre-owned car market.

In the current ecosystem, many issues were being faced, including during the transfer of the vehicle to the subsequent transferee, disputes in regard to third party damage liabilities, difficulty in determining the defaulter, etc.

The key provisions of the proposed rules include an authorization certificate for the dealers of registered vehicles to identify the authenticity of a dealer. Furthermore, the procedure for intimation of delivery of the vehicle between the registered owner and the dealer has been detailed.

The powers and responsibilities of a dealer in possession of registered vehicles have also been clarified. Dealers have been empowered to apply for renewal of registration certificate/ renewal of the certificate of fitness, duplicate registration certificate, NOC, transfer of ownership, of motor vehicles in their possession.

As a regulatory measure, maintenance of an electronic vehicle trip register has been mandated which would contain details of the trip undertaken viz. trip purpose, driver, time, mileage, etc.

As per the Ministry, these rules are expected to aid in recognizing and empowering intermediaries/ dealers of registered vehicles as well as provide adequate safeguards against fraudulent activities in the selling or purchasing of such vehicles. Comments and suggestions have been invited from all stakeholders within a period of 30 days.

The pre-owned car market in India has been gradually gaining ground. In recent years, the advent of online marketplaces, which are involved in buying and selling pre-owned vehicles, has further given a boost to this market.

[With Inputs from IANS]

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