India has notified Comprehensive regulatory ecosystem for used car market

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Frontier India News Network
Frontier India News Network
Frontier India News Network is the in-house news collection and distribution agency.

On December 22nd, the Indian Ministry of Road Transport and Highways (MoRTH) published notice G.S.R. 901(E) with the intention of promoting ease of doing business as well as transparency in the process of selling and buying registered automobiles through dealerships.

The market for used cars in India has been rising significantly. As more competitors enter the market, India’s used-car business is transitioning from an unorganised to an organised structure. Over the next five years, the used-car market will expand due to rising discretionary incomes, technologically-driven transparency and convenience, and greater availability of certified vehicles. This sector has been given a boost in recent years as a result of the proliferation of online markets for the acquisition and selling of pre-owned automobiles and other vehicles.

In the current ecosystem, there have been a number of issues have surfaced, such as disagreements regarding third-party damage obligations, difficulties in determining who the defaulter is, and so on. These issues have arisen during the process of transferring a vehicle to a subsequent transferee. In order to build a comprehensive regulatory framework for the used automotive business, the Ministry of Road Transport and Highways (MoRTH) has now modified Chapter III of the Central Motor Vehicle Rules, 1989. This was done in order to bring the rules up to date.

Principal provisions of the proposed rules include:

  1. In order to verify the legitimacy of a dealer, an authorization certificate designed specifically for dealers who sell registered vehicles has been made available.
  2. In addition, the process for informing the registered owner of the vehicle as well as the dealer when the car has been delivered has been laid out in detail.
  3. Further clarification has been provided about the authorities and obligations of a licenced automobile dealer.
  4. Dealers now have the authority to apply for the transfer of ownership of motor vehicles in their possession, as well as the renewal of registration certificates, duplicate registration certificates, and NOCs.
  5. As a form of regulation, the utilisation of an electronic vehicle trip register is now required to be carried out. This would include information about the purpose of the journey, the driver, the time, the miles, and other relevant details.

These rules will help in identifying and empowering intermediaries of registered vehicles, as well as providing adequate safeguards against fraudulent activities related to the sale or purchase of such vehicles. Additionally, these rules will assist in preventing fraudulent activities related to the sale or purchase of such vehicles.

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