Authorisation certificates for car dealers introduced to check malpractices

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The Ministry of Road Transport and Highways (MoRTH) has introduced authorization certificates for the dealers of registered vehicles to identify the authenticity of a dealer, a move that will promote ease of doing business and transparency.

MoRTH in a notification issued on December 22, has amended chapter III of the Central Motor Vehicle Rules, 1989 to build a comprehensive regulatory ecosystem for the pre-owned car market.

According to the notification, the procedure for intimation of delivery of 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 of pre-owned vehicles has further given a boost to this market.

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

As per the notification, dealers have been empowered to apply for renewal of registration certificate/ renewal of 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 notification said these rules will aid in recognizing and empowering intermediaries/dealers of registered vehicles as well as provide adequate safeguards against fraudulent activities to the selling or purchasing of such vehicles.

The new rules will come into force with effect from April 1, 2023.