Central Motor Vehicle Rule amended to ensure transparency in sale, purchase of registered vehicles via dealers

The Centre on Wednesday amended Chapter III of Central Motor Vehicle Rules, 1989 to build a comprehensive regulatory ecosystem for the pre-owned car market to ensure transparency in the sale and purchase of registered vehicles through dealers.

According to suggested changes by the Ministry of Road Transport and Highways (MoRTH), an authorisation certificate for the dealers of registered vehicles has been introduced to identify the authenticity of a dealer.

Further, the procedure for intimation of delivery of vehicle between the registered owner and the dealer has been detailed.

The powers and responsibilities of a dealer in possession of registered vehicles have also been clarified.

Dealers have been empowered to apply for renewal of registration certificate and renewal of certificate of fitness, duplicate registration certificate, NOC, transfer of ownership, of motor vehicles in their possession.

As a regulatory measure, maintenance of an electronic vehicle trip register has been mandated which would contain details of the trip undertaken related to trip purpose, driver, time, mileage etc.

These rules will help in recognising and empowering intermediaries and dealers of registered vehicles as well as providing adequate safeguards against fraudulent activities to the selling or purchasing of such vehicles, official sources said.

The changes have been proposed keeping in mind the fact that in the current ecosystem, many issues are being faced during transfer of vehicle to subsequent transferee, disputes related to third party damage liabilities and difficulty in determination of defaulter.