Parliamentary panel suggests framing of strict norms for vehicle dealers

Recommends states for optional vehicle registration by dealers, strict guidelines for auto retailers

Noting that Regional Transport Offices (RTO) are "den of corruption" and vehicle dealers are indulged in malpractices, a Parliamentary panel has recommended making registration of vehicles by dealers optional to states and framing of strict guidelines for auto retailers.

"Strict guidelines may be prescribed for the functioning of the vehicle dealers ... The Committee also recommends that registration of vehicles by dealers may be made optional to states depending on the state's specific requirements," Parliamentary Standing Committee on Transport said in its report on 'Motor Vehicles (Amendment) Bill, 2016.'

The 31-member committee, headed by Mukul Roy, noted that a number of state governments are unhappy with the functioning of vehicle dealers as they are under-invoicing, overcharging customers on logistics/handling charges, taking extra insurance premium and indulging in other malpractices.

It said vehicle dealer is an agent of the manufacturer and shall not be made an instrumentality of the government to perform statutory functions and quasi-judicial powers of the registration authority.

"At the same time, the committee notes that RTOs throughout the country are overburdened and understaffed. Moreover, they are a den of corruption," it said.

On the proposal for producing vehicle before the registering authority, the Committee recommended that it should not be made mandatory to be followed by all states and also recommended that it may be implemented in such a way that the regional and local needs are effectively addressed and the dealers may not be able to manipulate the system or vehicle configuration to suit their needs.