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 during transfer of vehicle to subsequent transferee, disputes in regard to third party damage liabilities, difficulty in determination of defaulter among others,” the statement said.
The Ministry of Road Transport and Highways (MoRTH) has now amended the Central Motor Vehicle Rules, 1989 to build a regulatory ecosystem for the pre-owned car market. Under the new rules, an authorization certificate for the dealers of registered vehicles has been introduced to identify the authenticity of a dealer. The procedure for intimation of delivery of vehicle between the registered owner and the dealer has also been detailed.
Dealers have been empowered to apply for renewal of registration certificate or the renewal of certificate of fitness, duplicate registration certificate, No Objection Certificate, 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 such as trip purpose, driver, time, mileage among others.
The powers and responsibilities of a dealer in possession of registered vehicles have also been clarified. These rules aim to aid in recognizing and empowering intermediaries or dealers of registered vehicles as well as provide adequate safeguards against fraudulent activities to the selling or purchasing of such vehicles.
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