Road transport ministry’s BIG move for second-hand car market, proposes authorization certificates for car dealers to check malpractices | Auto News

To identify the authenticity of a dealer, the Ministry of Road Transport and Highways (MoRTH) has proposed an authorization certificate for the dealers of registered vehicles. MoRTH has come up with this initiative to promote ease of doing business and transparency in the sale and purchase of registered vehicles through dealers. In a draft notification, MoRTH 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 a 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 pre-owned vehicles has further given a boost to this market.

In the current ecosystem, many issues were being faced. During the transfer of the vehicle to the subsequent transferee, disputes regarding third-party damage liabilities, difficulty in determination of defaulter, etc.

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As per the proposed draft notification, dealers have been empowered to apply for renewal of registration certificate/ renewal of the 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 recognizing and empowering intermediaries/dealers of registered vehicles as well as providing adequate safeguards against fraudulent activities in the selling or purchasing of such vehicles. Comments and suggestions are invited from all stakeholders within thirty days.

(With inputs from PTI)

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