Road transport ministry issues draft rules to curb fraud in used car market

Dealers of registered vehicles must get authorisation certification; intermediaries will have to provide details of each registered vehicle

After several regulatory gaps emerged in the fledgling pre-owned car market, the Ministry of Road Transport and Highways (MoRTH) has moved to address these concerns to prevent fraudulent activities around the sale and purchase of used vehicles, issuing a draft notification setting down guidelines and new regulations for the vehicle resale 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.,” the ministry said, in the notification issued late on Wednesday.

Authorities will now mandate dealers of registered