Dynamite News Road Transport Ministry proposes draft rules to check fraud in used car resale market
The Ministry has proposed to amend Chapter-3 of the Central Motor Vehicles Act, 1989 to create a comprehensive regulatory ecosystem for the pre-owned car market. Read more on Dynamite News:
New Delhi: New Delhi: The Union Ministry of Road Transport and Highways (MoRTH) has issued a draft notification proposing guidelines and new regulations for the pre-owned vehicle resale market to prevent fraudulent activities around the sale and purchase of used vehicles.
“In the current ecosystem, many issues were being faced viz. during transfer of vehicle to subsequent transferee, disputes in regard to third party damage liabilities, difficulty in determination of defaulter etc.,” the Ministry said, in the notification issued late on Wednesday.
The Ministry has proposed to amend Chapter-3 of the Central Motor Vehicles Act, 1989 to create a comprehensive regulatory ecosystem for the pre-owned car market.
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According to the draft rules, the procedure of delivery of vehicle between the registered owner and the dealer has been detailed, and responsibilities of a dealer in possession of registered vehicles have also been clarified.
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Dealers of registered vehicles must get authorisation certification; intermediaries will have to provide details of each registered vehicle.
Authorities will now mandate dealers of registered vehicles to get an authorisation certification from registering authorities, which will be valid for five years, according to the draft.
The pre-owned car market has been gradually increasing in India, and especially with the advent of online marketplaces for buying and selling pre-owned vehicles, the Ministry said.
Intermediaries will now have to inform authorities about each registered vehicle that will be taken up for resale.
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The new transfer process will also allow intermediaries to become de-facto owners upon the completion of the compliance procedures mentioned above.
“Authorised dealer of registered vehicles shall be competent to apply for renewal of registration certificate/renewal of certificate of fitness, duplicate registration certificate, NOC, transfer of ownership of motor vehicle, in relation to vehicles in his possession,” the notification said.
Moreover, the Ministry has also made it mandatory to maintain an electronic vehicle trip register that would contain details of the trip undertaken, such as trip purpose, driver, time, mileage etc.
Stakeholders can submit comments and feedback on the draft notification within 30 days, according to the Ministry. (with Agency inputs)