Road transport ministry proposes authorisation certificates for car dealers to check malpractices

New Delhi: To promote ease of doing business and transparency in the sale and purchase of registered vehicles through dealers, the Ministry of Road Transport and Highways (MoRTH) has proposed an authorisation certificate for the dealers of registered vehicles to identify the authenticity of a dealer.

The MoRTH in a draft notification has proposed amendments in chapter III of Central Motor Vehicle Rules, 1989 to build a comprehensive regulatory ecosystem for the pre-owned car market.

According to the draft notification, the procedure for intimation of delivery of vehicle between the registered owner and the dealer has been detailed, and the powers and responsibilities of a dealer in possession of registered vehicles have also been clarified.

The pre-owned car market in India has been gradually gaining ground. In recent years, the advent of online marketplaces, which are involved in buying and selling of pre-owned vehicles has further given a boost to this market.

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.

As per the proposed draft notification, dealers have been empowered to apply for renewal of registration certificate/ 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 viz. trip purpose, driver, time, mileage, it said.

The draft notification said these rules are expected to aid in recognising and empowering intermediaries/ dealers of registered vehicles as well as provide adequate safeguards against fraudulent activities to the selling or purchasing of such vehicles.

Comments and suggestions are invited from all stakeholders within a period of thirty days.

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