Min of Road Transport (MoRTH) Issues Notification for Sale and
Purchase of Registered Vehicles through Dealers
·
Notification
G.S.R 901(E) issued to promote ease of doing business and transparency in the
sale and purchase of registered vehicles through dealers
[G.S.R
901(E) on 22 December 2022]
The Ministry of Road
Transport and Highways (MoRTH) has issued a notification G.S.R 901(E) on 22
December 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 now amended
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 will 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.