Draft notification to promote ease of doing business and transparency in sale and purchase of registered vehicles through dealers
The Ministry of Road Transport and Highways (MoRTH) has
issued a draft notification G.S.R 693(E) on 12 September 2022 to promote ease
of doing business and transparency in the sale and purchase of registered
vehicles through dealers.
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 of pre-owned vehicles has further given a boost
to this market.
In the current ecosystem, many issues were being faced
viz. during transfer of vehicle to subsequent transferee, disputes in regard to
third party damage liabilities, difficulty in determination of defaulter etc.
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.
The key provisions of the proposed rules are as follows:
1. An authorization certificate for the dealers of
registered vehicles has been introduced to identify the authenticity of a
dealer.
2. Furthermore, the procedure for intimation of delivery
of vehicle between the registered owner and the dealer has been detailed.
3. The powers and responsibilities of a dealer in
possession of registered vehicles have also been clarified.
4. Dealers have been empowered to apply for renewal of
registration certificate/ renewal of certificate of fitness, duplicate
registration certificate, NOC, transfer of ownership, of motor vehicles in
their possession.
5. 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.
These rules are expected to aid in recognizing and
empowering intermediaries / dealers of registered vehicles as well as provide
adequate safeguards against fraudulent activities to the selling or purchasing
of such vehicles.
Comments and suggestions are invited from all
stakeholders within a period of thirty days.