[latentpotential]

Originally Posted by SirAlec

I am a small towner. But all those guys who bought the cars didn't checked the original RC and Insurance before buying.? thats sheer carelessness.

The normal practice to buy any car is to check the following in original
1. registration certificate
2. insurance
3. permit in case of commercial vehicle.

One more thing, in rajasthan, we still have old fashioned normal paper based RC. in that its clearly mentioned if its hypothecated to any banks or private financier.
So my question is there any provision to check that in smart card based registration.?

If the original owner has cleared all the dues of banks but didn't removed the hypothecation. A form 35( in rajasthan) accompanied with a no due certificate from the bank on its original letterhead with stamps is required.

Smart cards have a seperate line that clearly states Hypothecated To: ...

[Tapish]

Originally Posted by Gotham_City

If a bank / NBFC extends a loan to any company, it will take fixed assets, inventory and a.c receivables as the collateral. It cannot claim that the goods sold to the end customer as part of collateral (and take them in its possesion to recover the loan).

Originally Posted by pganapathy

How exactly does the financier get hold of the vehicles and why should the cops take the vehicles away from the owners.

The cars are a collateral as the original documents are with the financier. The people who bought the car do not have any documents. Since the documents are (maybe hypothecated) to the financier, he is still the legal owner.

That said, the customers are surely on a solid footing. Inconvenience is the only price they will pay for being careless.

Cheers,
Tapish

[mxx]

Originally Posted by Tapish

The cars are a collateral as the original documents are with the financier. The people who bought the car do not have any documents. Since the documents are (maybe hypothecated) to the financier, he is still the legal owner.

That said, the customers are surely on a solid footing. Inconvenience is the only price they will pay for being careless.

Cheers,
Tapish

Originally Posted by pganapathy

How exactly does the financier get hold of the vehicles and why should the cops take the vehicles away from the owners.

As I understand it, the dealer borrowed money from someone and didn't repay him. How did the cars wind up becoming collateral.

Still confused. I am not sure about how first choice works. But used car dealers do not transfer the document in their name before selling. So, it is impossible that the cars are hypothetical in the financier's name in the RTO. Do lending agencies provide finance for something that is in the name of some other party?