With pre-owned vehicle market gaining momentum, the Ministry of Road Transport and Highways (MoRTH) has issued a draft notification to bring transparency in the sale and purchase of registered vehicles through dealers.
The MoRTH intends to build a comprehensive regulatory eco-system for pre-owned, or the second hand, car market by amending the Central Motor Vehicle Rules, 1989.
The Ministry has proposed amendments in Chapter III of the Central Motor Vehicle Rules, 1989, to build a comprehensive regulatory ecosystem for the pre-owned car market.
Key Highlights
Dealers of registered vehicles will require an authorization certificate. Furthermore, the procedure for intimation of delivery of the vehicle between the registered owner and the dealer has also been detailed.
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.
Maintenance of an electronic vehicle trip register has been mandated which would contain details of the trips undertaken viz. trip purpose, driver, time, mileage, etc.
These provisions/rules are expected to help in recognizing and empowering dealers of registered vehicles as well as provide adequate safeguards against fraudulent activities prevalent in the second hand car market.
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.