Govt finalises rules for used car market, aims to resolve host of issues

Move to curb rise of fraudulent intermediaries, address disputes over third party damage liabilities

The ministry of road transport and highways (MoRTH) has finalised guidelines to regulate the second hand car market after the emergence of several issues, including the rise of fraudulent intermediaries exploiting regulatory loopholes. MoRTH had issued a draft notification for public comments three months ago.

“In the current ecosystem, many issues were being faced during the transfer of a vehicle to the subsequent transferee such as disputes in regard to third party damage liabilities, difficulty in determination of defaulter, etc,” the ministry said.

Under the draft rules, authorities will now make it a must for dealers of registered vehicles to