Sellers of pre-registered (pre-owned) vehicles will have to take a dealership from RTO
Raipur 29 December 2022//
As per the intention of Chief Minister Mr. Bhupesh Baghel, under the guidance of Transport Minister Mr. Mohammad Akbar, a new set of rules are being introduced by the department, which will help to identify the dealer and the vehicle, as well as help in controlling the purchase and sell of stolen vehicles.
Keeping in mind the benefits of buying and selling second-hand vehicles and to make it transparent, the Transport Department of Chhattisgarh had written to the Central Government to authorize second-hand vehicle sellers as a dealer. After this, changes have been made in the Central Motor Vehicle Rules, 1989, and this new rule will come into effect from April 1, 2023. Through this, a step is being taken to strengthen the ecosystem of the pre-owned vehicle market. Now the market of pre-owned vehicles will be able to take advantage of financial facilities directly by joining the mainstream financial market.
Significantly, the market for pre-owned vehicles in Chhattisgarh is slowly gaining momentum. In recent years, the advent of online second-hand car-selling platforms has further boosted this market. In the current ecosystem, several legal and financial issues are being faced. During the transfer of the vehicle to the subsequent dealer, there was a dispute regarding third-party damage liabilities, difficulty in determining the defaulter, etc.
Raipur Pre-Owned Dealers Association has been demanding for a long time that second-hand vehicle dealers should also be given dealer status like new vehicle dealers. Having a dealer status will help a second-hand dealer after purchase to showcase the vehicle in stock or take finance. In case of an accident of a vehicle, assistance will be provided during the insurance claim as well as dealers can also insure their stocks so that they can be compensated in any kind of calamity etc.
The second-hand vehicle seller will now be able to buy the vehicle from the buyer and keep it legally in stock and as per the requirement. They can also do all the paperwork required for vehicles like the renewal of the registration certificate or second copy of the registration certificate, no objection certificate, insurance or ownership transfer of the vehicle, they shall be competent to apply for all these papers. Similarly, now it will be easier for car buyers that they can identify the authorized second-hand car seller. With this, tax default vehicles, stolen vehicles or other disputes can be avoided or resolved and in case of any problem, information regarding the dealer can be obtained from the RTO office.
Under the key provision of the proposed rules, an ‘authorization certificate’ has been introduced for dealers of registered vehicles to identify the authenticity of the dealer. Further, the procedure for acknowledging of delivery of the vehicle between the registered owner and the dealer has been elaborated. The powers and responsibilities of the dealer in possession of the registered vehicles have also been clarified. Dealers have been empowered to apply for renewal of registration certificate/renewal of fitness certificate, duplicate registration certificate, NOC, and transfer of ownership of motor vehicles under their possession.
Similarly, as a regulatory measure, maintaining an electronic vehicle trip register has been made mandatory, which shall contain the details of the journey undertaken. The purpose of the journey, driver, time, mileage etc. will be mentioned. These provisions will help in identifying and empowering the dealers of registered vehicles. It also provides adequate safety against fraudulent activities for the sale or purchase of such vehicles.
