To promote ease of doing business and transparency in the sale and purchase of registered vehicles through dealers, Ministry of Road Transport and Highways (MoRTH) issued a notification G.S.R 901(E) on 22 December.
India’s used car market has been steadily expanding. With more players entering the market, India’s used-car industry is evolving from an unorganised to an organised system. Rising disposable incomes, technology-driven transparency, convenience, and increased availability of certified cars all contribute to the growth of the used-car market over the next five years. In recent years, the introduction of online marketplaces for buying and selling used vehicles has given this market a boost.
Many issues were encountered in the current ecosystem, such as during the transfer of a vehicle to a subsequent transferee, disputes over third-party damage liabilities, difficulty determining the defaulter, and so on. MoRTH has now amended Chapter III of the Central Motor Vehicle Rules, 1989 in order to create a comprehensive regulatory environment for the used car market.
Key provisions of the proposed rules are:
1. An authorization certificate for the dealers of registered vehicles has been introduced to identify the authenticity of a dealer.
2. In addition, the procedure for notifying the registered owner and the dealer of vehicle delivery has been detailed.
3. The powers and responsibilities of a registered vehicle dealer have also been clarified.
4. Dealers now have the authority to apply for the renewal of registration certificates, duplicate registration certificates, NOCs, and the transfer of ownership of motor vehicles in their possession.
5. The use of an electronic vehicle trip register has been mandated as a regulatory measure. This would include information about the trip’s purpose, driver, time, mileage, and so on.
These rules will assist in identifying and empowering intermediaries of registered vehicles, as well as providing adequate safeguards against fraudulent activities related to the sale or purchase of such vehicles.
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