The Ministry of Road Transport and Highways, also known as MoRTH, has issued a notice including finalized guidelines to regulate the second-hand car market after the rise in several issues, including fraudulent intermediaries.
The government had issued a draft notification for the public three months back, which stated, "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."
As per the draft rules, the respective car businesses and dealers will have to get an authorized certificate from the registering authorities that will be valid for five years. It is the first and essential step to running the second-hand car business.
Due to various frauds and incidents, the government stated that each vehicle taken up for sale should be registered with part-onus of disclosure and compliance along with the vehicle's original owner.
The government's notice also stated, "An authorised dealer of registered vehicles shall be competent to apply for renewal of registration certificate/renewal of certificate of fitness, duplicate registration certificate, NOC, transfer of ownership of motor vehicle, in relation to vehicles in his possession."
The used car dealers will no more be able to drive the vehicles on the road except for the test drives for potential customers. However, they will be permitted to keep basic maintenance and paint jobs.
Besides this, the government also made it mandatory for people to maintain an electric vehicle trip register, which will keep all the essential details of the trip undertaken, such as driver name, time, mileage, the purpose of the trip, etc. If dealer violates rules, their driving license can be revoked along with other fines and punishments.
This process will be created where the old owner would not be associated with the new owner, and the dealers would have to update the new owner's details to the government authorities, which is the State Transport Department.
As per the resources, the new rules and regulations will be implemented across the country by the end of the year as an essential part of the Central Motor Vehicle Rules (CMVR).
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