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Sunday Feb 05, 2023

New Rule 2023 Dealer of old vehicles will have to take certificate sale of stolen cars will be curbed


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In view of the rapidly growing business of used cars in the country, the Central Government has decided to make this business transparent. Under this, the government has implemented authentication for the deal of registered vehicles to identify the genuineness of the dealers. The new rules will come into effect from April 1, 2023.

According to a notification issued by the Ministry of Road Transport and Highways on December 22, Chapter 3 of the Central Motor Vehicles Act, 1989 has been amended to create a comprehensive regulatory ecosystem for the used car market. It also lays down the procedure for intimation of supply of vehicle between the registered vehicle owner and the dealers. The rights and obligations of the dealers regarding the retention of the registered vehicle have also been clarified.

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Dealers have been empowered to apply for renewal of registration certificate- vehicle fitness certificate, true copy of registration certificate, NOC, transfer of ownership of vehicles in their possession.

Mandatory to keep trip register

As a regulatory measure, it has been made mandatory to maintain an electronic vehicle maintenance trip register, in which complete details of the use of the vehicle will have to be given. In this, complete information about destination, reason for going, driver, mileage, time etc. will have to be given. These rules will be helpful in identifying and authorizing dealers-intermediaries of registered vehicles. Along with this, there will also be adequate protection from fraud in relation to the purchase and sale of these vehicles.

At present, many problems come in the way of buying and selling of old cars. Such as problems with the buyer during transfer of vehicles, disputes regarding compensation for third party damages, difficulty in determining who is the defaulter, etc. But after the new rules are implemented, these problems will end. Especially in remote areas of the country, the business of selling stolen cars will be curbed.

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