The Ministry of Road Transport and Highways has proposed changes to the Central Motor Vehicle Rules through which second-hand dealers will now have to obtain an authorisation for each vehicle that comes into their possession. This will deem them to be the effective owners of these vehicles for the period it is in their possession and save buyers of these vehicles from any legal wrangling that may come about during this period.
Second-hand dealer authorisation
As per the changes proposed by the transport ministry, a vehicle owner who is selling to a used car dealer will have to intimate the RTO of this transaction online. This will also be signed by the dealer who will then become the legal owner of the vehicle. In this period, the dealer can also apply for fitness certificates, duplicate registration certificates and NOCs as well as the transfer of ownership.
During this period, dealers will not be allowed to use these vehicles on public roads other than for test drives, maintenance or repair work. Dealers will have to maintain a trip register for each such vehicle in their possession. As for who can apply for these authorisations, it is open to any online or offline entity irrespective of size. The finer details on the implementation of these laws will be known later but violation by dealers will result in penalties and revoking of the authorisation.
Respite for owners
This move will go a long way in instilling confidence in both the buyers and sellers of used vehicles. Recurring issues such as the late transfer of ownership, incomplete or fake documentation and wrongly issued challans can be addressed better with this change. The result should be more confidence in second-hand purchases which could in turn grow the used vehicles market in the country.
Keyword: Second-hand dealers to be deemed owners of such vehicles>