Govt to regulate second-hand car dealers to bring transparency & accountability | India News


NEW DELHI: By the end of this year, dealers involved in resale of cars and other vehicles will need to get “authorisation” from the state transport departments as per the road transport ministry’s proposal to ensure transparency in sale-purchase of registered vehicles. Since the authorised dealers will be the “deemed” owners of such vehicles, this will insulate the real owners from legal hassles in case of any untoward incident involving the vehicles when these are in the dealers’ possession.
Currently, there is no regulation to fix the responsibility on such dealers. TOI has learnt that the road transport ministry has proposed changes in the Central Motor Vehicle Rules to introduce this reform, which will impact a large number of vehicle owners. The registration of all such dealers will be done online.
The authorised “dealer of registered vehicles” are the ones who are authorised to engage in sale or purchase of registered vehicles. So, any online or offline player, irrespective of its size, can get the authorisation for this business.
As per the proposal, the vehicle owner will be required to intimate the registering authority (RTO) electronically as soon as the registered vehicle is handed over to the registered dealer. The dealers will also have to put in their signatures. The authorised dealer will be deemed owner of the vehicle and will be responsible for any incident related to the vehicle during its custody. It can apply for the fitness, duplicate RC and NOC, transfer of ownership of vehicle.
The authorised dealer of registered vehicles will not use them on public roads except for trial runs for potential buyers, for maintenance and painting. There have been several instances when vehicles sold through dealers remain in the name of the original owners for months and they face the risk of getting challans for traffic rule violations and even receiving notice for such vehicles involved in crimes.
The authorised dealer will also have to maintain a trip register of each vehicle in their possession and maintain the details.
After the final resale, the vehicle will be transferred in the name of the new owner.
Sources said since the condition for authorisation and the details of their operation will be defined clearly, any violation will amount to penalty and withdrawal of authorisation.


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