Registration mandatory for dealers of second-hand vehicles

NEW DELHI: The Central Government has made it mandatory that dealers in second-hand vehicles must be registered. Moreover, the owners must notify the state transport department about the details of the dealer to whom they are handing over their vehicles to sell.

The Road Transport and Highways Ministry of India will bring changes to the motor vehicle laws to protect the consumers and to regulate the resale of vehicles. Authorized dealers of second-hand vehicles must now notify the transport department about the sale of a vehicle.

According to the recommendation of the Central Government, the dealer will be responsible for the change in ownership of a vehicle once it is sold. In addition, the real owner of the vehicle will not be held responsible for any toward incidents involving the vehicles while it is in the custody of the dealer. Currently, the dealers held no responsibilities regarding the vehicles in their possession.

Sale of vehicles must be notified online. Other recommendations of the Central Government concerning the sale of used vehicles are as follows:

• Once the owner hands over the vehicle to a dealer the owner must inform the registration authority (RTO) through online.
• After notifying the RTO, application for fitness, duplicate RC, NOC, and transfer of ownership can be applied.
• The vehicle must not be driven on public places except for trial runs, maintenance work, and painting.
• If the dealer breaks these rules, his or her registration will be cancelled and will be fined.
• The dealer is required to keep the record of the trip register.

The used cars in India during 2022 fiscal year stood at 35 lakhs and is expected to grow to 70 lakhs by 2026.