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Old 22nd October 2014, 14:56   #1
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Default Manufacturers not taking RTO approvals before launching cars

All of us have been following the CAR WARS hotting up in the festive season.

I somehow believe manufacturers are blatantly launching cars without RTO approvals in respective states.

Lapse from the parties involved-
  1. Finance companies fund cars
  2. Dealer get a TR and delivers to gullible customers
  3. Insurance Companies also insure without knowing if a PR will be done and when
  4. Manufacturers advertise and promote sales knowing the fact that new car owners will not be able to drive. All that matters to them is to sell volumes.
What happens-
  1. Police will not entertain complaints for a TR registered car if stolen
  2. TR itself is not for running on the road and only for special Muhurat/Pooja or getting a preferred number. In most cases TR is valid for a month.
  3. Insurance companies will also not entertain if a TR vehicle is stolen.
  4. Worst of all, you park your car and lock it up in the garage till the PR can be done. What is the use of a car if you want to lock it up.
Perhaps we need to ask the dealers when they are receiving booking amounts for new cars if they have approvals and they will have PR on delivery date.

Many dealers/manufacturers do not deliver if they don't have approvals. Some dealers/manufacturers are habitual offenders for TR while some states are extremely bureaucratic making it difficult for timely approvals of variants while some states are more lenient when it come to TR/PR rules enforcement.

I believe government and Manufacturers are to blame in this case. If a car variant/s are not approved by RTO and a manufacturer pushes for launch who is left with a raw deal.

Would like to hear more from fellow members on your experiences.
  1. has any member been a victim?
  2. Is there a legal process to challenge this?
  3. How do we ensure the above parties don't getaway by trapping customers into this?
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Old 22nd October 2014, 15:43   #2
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Default re: Manufacturers not taking RTO approvals before launching cars

I know a friend duped by a luxury car manufacturer. He filed a case against the dealer and an out of court settlement was arrived. The details of the case

Apparently imported vehicles of certain specs need to have homologation certificates.
The dealers need to send a sample (generally their demo cars) with these homologation certificated to the RTO for a physical verification.

Once the RTO verifies the certificate with actual vehicle they issue a directive the vehicle can be registered in that state. Apparently this particular dealer did not have the sample/demo vehicle. Generally this is sorted out by bribes/other favors. However i guess the RTO commissioner was strict and did not allow the passing. The dealer still went ahead and delivered 8 vehicles on temporary number plates.

The RTO in turn fined the dealer and became much more adamant to approve the vehicle. In the Ego tussle ultimately customers suffered as it took 8 months to sort this out.

The fine imposed on my friend for late registration was paid by the dealer. Don't know what happened to remaining customers.

This was a case in Rajasthan.
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Old 22nd October 2014, 16:20   #3
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Default re: Manufacturers not taking RTO approvals before launching cars

Quote:
Originally Posted by kaks15 View Post
In the Ego tussle ultimately customers suffered as it took 8 months to sort this out.
Brilliant..!!

Clearly customer suffered although in this case was an import.

I believe Indian cars Manufacturers need to confirm all RTO approvals are done before vehicle launch. Without which it is a clear case of cheating the customer deliveries without PR.

Also the Government and its agencies should make it a single window process for approval no matter which state. I hope some of this will get applied in the new government's reforms in the industrial policy and boost consumption.

Any other members with any such issues for Indian cars?

Last edited by Miyer : 22nd October 2014 at 16:26.
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Old 22nd October 2014, 16:53   #4
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Default re: Manufacturers not taking RTO approvals before launching cars

Quote:
Originally Posted by kaks15 View Post
Apparently imported vehicles of certain specs need to have homologation certificates.
The dealers need to send a sample (generally their demo cars) with these homologation certificated to the RTO for a physical verification.
Is this to be done by the dealer or the manufacturer?

I faced a similar situation 4 years back when I bought Punto MJD 90HP. I bought it soon after the launch of the 90HP version. While I was running around with temp plates (because I bought the car from a dealer in a different district than my place of residence), an officer from MVD stopped me and asked for my papers. My papers were in order. The officer was very helpful (he told me he too had a Punto!!), and he told me that a homologation certificate will be required since this was a new engine on the Punto. I asked the dealer and they sent me a copy of a letter from the Transport Commissioner's office to all RTOs indicating that this new version of Punto can be registered in the state. I went for registration with that letter and did not have any issues.

Last edited by StarrySky : 22nd October 2014 at 16:56.
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Old 22nd October 2014, 17:58   #5
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Default re: Manufacturers not taking RTO approvals before launching cars

Related Thread: Link (RTO registration delays with freshly launched cars).

Honestly, the main reason behind this issue is the disorganised nature of our RTOs. There is no centralisation at all, they're spread all across and each has its own systems & style of operation.

This (Manufacturers to upload car specifications to Govt website) might just be a step in the right direction.

Quote:
Originally Posted by kaks15 View Post
I know a friend duped by a luxury car manufacturer.
Please share which manufacturer it was? Thanks. We need to know who had the gall to abandon their customer like this.
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Old 22nd October 2014, 17:59   #6
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Quote:
Originally Posted by StarrySky View Post
homologation certificate will be required since this was a new engine
I have the court ruling of a petitioner who wanted to register his ATV from this link-

http://www.gaadi.com/news/atv-owners...istration-2358

The court, after hearing the case, noted that the decision of the RTO is cryptic and without application of mind. Lashing out at the RTO, the court said that the decision not to register the vehicle was “arbitrary and unsustainable”. Justice B S Patil took serious exception to the RTO asking Jois to contact the transport commissioner.”

“The court ruled, “The RTO ought to have called upon the petitioner to produce the required documents, if at all they were necessary under the rules, before registering the vehicle. If he was not sure of the same, he should have himself contacted the higher authorities instead of asking the petitioner to contact the transport commissioner. This will tantamount to harassing the petitioner.”

Setting aside the endorsement made by the RTO on non-registration of the vehicle, the court ruled that if any additional certificates are to be produced by the petitioner as per the rules, the petitioner has to be informed of the same within a week from the date of the court’s order. The court also directed the RTO to give reasonable time to Jois to produce the required documents and immediately take action to register the vehicle.
Jois’ counsel, Sachin B S, said that the endorsement made by the RTO was a blanket order done casually. “The court has ruled in favour of the owner and directed the RTO to register the vehicle. This is the first such case and other quad bike owners will be happy with the outcome. There are many such bike owners across the state who will benefit from this order.”

The questions for local manufacturers- If all vehicles on India need to get a homologation (Approval) certification by ARAI (Automotive Research Association of India) before they can be registered by the RTO, what is the role of the RTO in approvals and delay in registering a new car?

Quote:
Originally Posted by GTO View Post
Dear GTO,
this is precisely the info I was wanting to discuss. I am planning to file a PIL for all the flaws in the system between the manufacturers and customers in the country with the RTO playing games in between.

I started this thread to understand from the likes of experts like you and other members for any such inputs and harassment they have faced.

Last edited by GTO : 24th October 2014 at 11:35. Reason: Merging back to back posts
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