Promotion of 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 issued a notification to promote ease of doing business and transparency in the sale and purchase of registered vehicles through dealers. The notification was issued on 22 December 2022

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

In the current ecosystem, several shortfall were noticed such as disputes in third party damage liabilities,  difficulty in determination of defaulter etc. during transfer of vehicle to subsequent transferee.

MoRTH has now amended Chapter III of Central Motor Vehicle Rules, 1989 to build a comprehensive regulatory ecosystem for the pre-owned car market.

The key provisions of the proposed rules are as follows:

1. Authorization certificate for the dealers of registered vehicles has been introduced to identify the authenticity of a dealer.

2. Procedure for intimation of delivery of vehicle between the registered owner and the dealer has been detailed.

3. Powers and responsibilities of a dealer in possession of registered vehicles have also been clarified.

4. Application by dealers for renewal of registration certificate/ renewal of certificate of fitness, duplicate registration certificate, NOC, transfer of ownership, of motor vehicles in their possession.

5. Maintenance of an electronic vehicle trip register has been mandated which would contain details of the trip undertaken viz. trip purpose, driver, time, mileage etc.

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