MoRTH Issues Draft
Notification to Promote Ease of Doing Business and Transparency in Sale and
Purchase of Registered Vehicles through Dealers
·
Comments
and suggestions are invited from all stakeholders within a period of thirty
days.
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.