Centre brings new rules for used-car transfers
New Delhi, July 25 -- Vehicles left with authorised dealers for more than six months without being sold could automatically become the dealer's property, while ownership transfers may be blocked if the vehicle has pending challans, unpaid user fees or invalid documents, under draft amendments to the Central Motor Vehicles Rules released by the ministry of road transport and highways (MoRTH) on Friday.
The proposed changes seek to regulate transactions in the organised used-car market, streamline ownership transfers and strengthen compliance requirements. The ministry has invited public comments on the draft rules within 30 days.
Under the proposed Rule 55BB, if a registered owner hands over a vehicle to an authorised dealer after filing Form 29C, but the vehicle's registration is not transferred through Form 30 within six months, ownership would automatically stand transferred to the last authorised dealer in possession of the vehicle. The transfer would be reflected on the VAHAN portal as if it had taken place under Section 50 of the Motor Vehicles Act. The draft also proposes that ownership of a motor vehicle cannot be transferred if it does not have a valid registration certificate, insurance certificate or pollution under control (PUC) certificate, or if it has pending traffic challans or unpaid user fees.
Similar restrictions have been proposed before a vehicle can be handed over to an authorised dealer or transferred between authorised dealers. Vehicles under hire-purchase, lease or hypothecation agreements, those released under superdari, or those involved in criminal cases, the transport of prohibited goods or accident cases would also be ineligible.
To regulate dealer transactions, the ministry has proposed a new electronic Form 29CA for dealer-to-dealer transfers. A vehicle delivered by its owner to an authorised dealer can be transferred between authorised dealers no more than twice before ownership is transferred to the eventual buyer through Form 30. Every transfer between dealers would have to be electronically reported on the VAHAN portal, with an acknowledgement generated automatically....
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