[TusharK]

The Government of India has laid out new rules to regulate used car and bike dealers. It is said that the new rules would promote ease of doing business and transparency.



As per the new rules, dealers of registered vehicles will need to have an authorization certificate. This has been introduced to identify the authenticity of a dealer. The government has also laid out the procedure for the intimation of delivery of vehicles between the registered owner and the dealer.

Dealers will be able to apply for renewal of registration certificate, fitness certificate as well as duplicate RC. Dealers can also apply for NOC and transfer of ownership of the vehicles in their possession.

The latest amendment of the Central Motor Vehicle Rules, 1989, mandates every dealer to maintain an electronic trip register with details such as trip purpose, driver, time, mileage, etc.

Source: ET Auto

Link to Team-BHP News

[Mustang_Boss]

Could anyone confirm whether:
- If a vehicle is handed over to a dealer, will it be striken off from the owner's name?
- Will it be moved to a Temp Dealer, marking the dealer as the temporary owner?
- Will Odometer tampering be considered criminal and punishable by Law?

if none of the above are happening,
How are these new laws going to help a prospective buyer is not yet clear to me.

[HighRevving]

Finally, some good news. I have been noticing how the entire used car market is now controlled by dealers. Some good, some fly by night. The market control if I may call it that, also means that they are dictating prices - low balling sellers and creating virtual demand in the name of chip shortage etc and inflating the prices to buyers. While I am not against them making money, it is terrible to see how buyers and sellers are so far apart; there should be some regulation to the dealer market otherwise they are depriving the sellers of even some fair value.

I can think of a few pointers here:

• Buyers and sellers have direct interaction when it is park & sell - when dealers claim they've bought the vehicle, enough proof has to be produced before the buyer puts in the money. Can't allow the buyer's money to be used for mobilisation by the dealer.
• Thorough check is made on accident vehicles and not some lame promise by the dealer like "sir, we don't even touch accident vehicles" while they sell them by the hour.
• Vehicles are transferred to the new owners without any delay. Dealers tend to end their scope at handing over forms and bank NOC where applicable. They should be held accountable if there is any untoward incident in between.
• Full transparency including vehicle number, RC copy etc to be shared. Many times we see the same car being shared by multiple dealers all around town without most of them knowing who the car belongs to or where it is parked.
• Paint thickness gauge and test drives should be allowed.

[WorkingGuru]

Bangalores' used car market has been operating in a very mafia-like cartel. This cartel has become a den of opaque financials with a lot of cash being laundered. New cars with waiting periods are being offered readily at a premium. I'm quite sure it's the same across the country by now.

Govt needs to bring in regulations that either dissolves this cartel, or, taxes them.

[SR-71]

I always thought the judiciary was more reasonable and sensible compared to the legislature and the executive. For once, it seems like the opposite when it comes to this particular issue. Thanks to the legislatures, now genuine sellers can (hopefully) breathe a little easy. I had to chase the dealer multiple times to get the name transfer done when I sold my car, courtesy of the judgement passed in 2018, blindly holding the registered party liable even if they used established players hoping for a genuine resale!

[ninjatalli]

Originally Posted by TusharK

The Government of India has laid out new rules to regulate used car and bike dealers. It is said that the new rules would promote ease of doing business and transparency.

A more detailed view of the new rules is as below. Refer to the attached amendment for more details and the various forms referenced.

55A. Authorisation of dealers of registered vehicles

1. No person shall act as dealer of a registered vehicle without a valid authorization certificate issued in Form 29 B by the registering authority in whose jurisdiction, he has place of business.

2. An application for grant or renewal of authorization certificate for sale of registered vehicle shall be made electronically on portal in Form 29 A, accompanied by appropriate fee as specified in rule 81, to the registering authority, in whose jurisdiction he has place of business.

3. On receipt of an application under sub rule (2), the registering authority may, if satisfied, issue to the applicant authorisation certificate, electronically on portal, in downloadable and printable form, in Form 29B within thirty days from the date of receipt of such an application. If application is not disposed within said period of thirty days, the application shall be deemed to be approved and authorisation certificate shall be deemed to be granted/renewed through the portal.

4. No application for grant or renewal of authorization certificate shall be refused by the registering authority unless the applicant is given an opportunity of being heard and reasons of such refusal are given in writing.

5. An authorization certificate granted or renewed shall be valid for 5 years from the date of initial grant or renewal.

6. Authorisation certifate shall be exhibited at conspicuous place, at the business place of authorised dealer of registered vehicles.


55B. Intimation to the registering authority, about the fact of delivery of vehicle to the authorized dealer of registered vehicles

1. Registered owner of a motor vehicle shall intimate the registering authority, with whom the vehicle is currently registered, the fact of delivery of vehicle to authorized dealer of registered vehicles, through Form 29C, submitted electronically on portal, dually signed by him and authorized dealer of registered vehicles. On successful submission of Form 29 C on the portal, acknowledgement number shall be auto generated through the portal.

2. Registered owner of a motor vehicle shall intimate the registering authority, to whom the intimation under sub rule (1) has been given, the fact of taking back vehicle from authorized dealer of registered vehicles, through Form 29CA, submitted electronically on portal, dually signed by him and authorized dealer of registered vehicles. On successful l submission of Form 29 CA on the portal, acknowledgement number shall be auto generated through the portal.


55C. Power and responsibility of authorized dealer of registered vehicles

1. After submission of Form 29 C, the authorized dealer of registered vehicles shall be deemed the owner of the motor vehicle and shall be solely responsible for all incidents related to such vehicle.

2. Authorized 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 through Form 29C.

3. Authorized dealer of registered vehicles shall maintain the record of inventory electronically, in Form 29D on portal.


55D. Purposes for which motor vehicle in possession of authorized dealer of registered vehicles may be used
An authorized dealer of registered vehicles shall not use any vehicle which is in his possession under rule 55B in a public place for any purpose other than the following:

(a) for a reasonable trial or demonstration by or exhibition by or for the benefit of a prospective purchaser; or

(b) for proceeding to or returning from a service center with the objective of painting or for repairs; or

(c) for proceeding to or returning from vehicle inspection and certification center or PUC center for the purpose of renewal of certificate of registration/ certificate of fitness/ PUCC; Provided that during use of such vehicles in public place, authorisation certificate shall be exhibited legibly on conspicuous part of vehicle, which can be easily readable from a distance of 15 meters.


55E. Maintenance of vehicle trip register
(1) An authorized dealer of registered vehicles shall maintain an electronic register in Form 29E on the portal.

(2) The particulars referred to in Form 29E, except the time of return under column 7, shall be entered before the commencement of each trip by the holder of the authorisation certificate or his representative and print out of Form 29E for such vehicle shall be carried during the trip by the driver of the vehicle and shall be produced on demand by any officer empowered to demand production of documents by or under the Act.

(3) The holder of an authorisation certificate shall, at the end of a trip, , fill in column 7 of Form 29E electronically, and Form 29E shall be open for inspection by the registering authority.

Source: MORTH

[anjan_c2007]

On paper things look very regulatory with enunciations by our highly evolved bureaucracy. These are the new rules that are mostly intended to be in control to rid the used car market from unscrupulous middle men.

The questions are:-

(1) The owner to dealer transfer if done at all will involve costs, which the new buyer shall bear.

(2) In case the dealer buys the car/s he will naturally be inclined to take possession of his new movable property. Do the dealers really have parking space to park so many cars in their premises, especially in the metros?

(3) Till date used car dealers have mostly evaded investing capital, while dealing with used cars. As per the notification, if they follow the rules they have to. The question is, whether they will as the old owner won't go for a fully paid transfer of ownership unless he or she gets back the car's market value ? For instance, a dealer selling a few Chevrolet Cruzes, Aveos, some old Fords and Tatas with niggles and more such cars that don't have an easy liquidity, will have to be first bought by the dealer. These cars are stuck at the used car dealer's premises and don't easily find new buyers. Whether an used car dealer will invest such huge funds with question marks on their future sale timelines? He is doing private business after all and is not here for charity.

(4) The Babus have worked, cocooned in their AC chambers to impress their masters. The ground realities are different. The Babus need to know that the Indian ingenuity is always at work 24x7. Soon we will see the used car dealers popping up with their own recipes, which will be time tested over the months and years and will become a practice.

(5) The best part however is that the old owner need not spent sleepless nights as his old car gets transferred, if the new rules are followed. The question is whether these rules will be followed by the dealers?

(6) Most used car dealers will abide by the registration norms and get themselves registered. Thereafter, quite a few of them are bound to flout many provisions that appear inconvenient to them. The regulatory agencies, mainly the RTO's will conduct checks. If deviations are found some could be fined, but given our RTO's credibility, it will open a brand new channel for bribery.

Hence we can, a few months from now on, share our own experiences on this very thread as to whether the new measures enumerated are really working to benefit the end consumer as intended? Or, whether things are getting more messy and difficult for both the dealer and the buyer?

[ghodlur]

Originally Posted by ninjatalli

55B. Intimation to the registering authority, about the fact of delivery of vehicle to the authorized dealer of registered vehicles

1. Registered owner of a motor vehicle shall intimate the registering authority, with whom the vehicle is currently registered, the fact of delivery of vehicle to authorized dealer of registered vehicles, through Form 29C, submitted electronically on portal, dually signed by him and authorized dealer of registered vehicles. On successful submission of Form 29 C on the portal, acknowledgement number shall be auto generated through the portal.

2. Registered owner of a motor vehicle shall intimate the registering authority, to whom the intimation under sub rule (1) has been given, the fact of taking back vehicle from authorized dealer of registered vehicles, through Form 29CA, submitted electronically on portal, dually signed by him and authorized dealer of registered vehicles. On successful l submission of Form 29 CA on the portal, acknowledgement number shall be auto generated through the portal.


55C. Power and responsibility of authorized dealer of registered vehicles

1. After submission of Form 29 C, the authorized dealer of registered vehicles shall be deemed the owner of the motor vehicle and shall be solely responsible for all incidents related to such vehicle.

2. Authorized 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 through Form 29C.

This still doesn't say whether post submission of form 29C the changes in RC will be made or RC would still reflect the previous owner's info.

Also there is no information on how the car Insurance will be treated since the Insurance ownership transfers happens only after the RC changes. Any damage to the vehicle when in possession of the dealer - how will the dealer claim the Insurance.

Will dealer be allowed to park the vehicles in open or has to be provide sufficient protection to vehicles with a closed parking. Almost all dealers have open parking and can always the Force Majeure clause (for floods, man made calamities etc)

There are a lot of ifs and buts in the new amendment. I guess time will tell the effectiveness of the implementation.

[deehunk]

The odometer reading should be linked to vehicle insurance and any vehicle should be scanned for tampering before insurance renewal or buying a policy for a car. This may be beneficial to both buyer and seller, no used cars should be sold without insurance, and insurance providers should be accountable for any tampering with the used cars.

[Venkatesh]

MoRTH has introduced a comprehensive regulatory ecosystem for pre-owned/secondary car market in India.



The move is aimed at promoting ease of doing business and transparency in the sale and purchase of registered vehicles through dealers.

Dealers of registered vehicles will require an authorization certificate. Many more provisions are proposed to be introduced to bring transparency & make the dealers accountable.

These provisions are expected to help in recognizing and empowering dealers of registered vehicles, as well as provide adequate safeguards against any fraudulent activities.

Link

[vredesbyrd]

This is an absolutely good move by the Govt. to regulate the Dealers.
However, this will also lead to increase of used car prices tenfold because "Certified caar, saar!".

[Slick]

Just a noob question, Will there be added fees or taxes to be paid to the Govt. ?

- Slick

[murlidar]

Originally Posted by ninjatalli

A more detailed view of the new rules is as below. Refer to the attached amendment for more details and the various forms referenced.

55A. Authorisation of dealers of registered vehicles

The above link you sent dated 12th sep 2022 was only a draft of the amendments calling for suggestions etc.
The final approval was made by gazette on 22nd Dec 2022 and made effective from 01 April 2023 see link below.

https://static.pib.gov.in/WriteReadD...1228148101.pdf

Big relief for owner seller of cars indeed. Now only thing is how to submit Form 29C with joint signatures to the concerned authority online. whose responsibility will it be?

[KiloAlpha]

Originally Posted by ninjatalli

A more detailed view of the new rules is as below. Refer to the attached amendment for more details and the various forms referenced.
...
6. Authorisation certifate shall be exhibited at conspicuous place, at the business place of authorised dealer of registered vehicles.
...
1. After submission of Form 29 C, the authorized dealer of registered vehicles shall be deemed the owner of the motor vehicle and shall be solely responsible for all incidents related to such vehicle.
...

The above two clauses will, in combination, formalize the used car trade. Given the lack of regulation around the business, so far, all dealers have been operating in a semi-grey area.
Car owners will now be more willing to sell their car to dealers, given that they are explicitly, by law, absolved of the responsibility once the car is delivered to the dealer. This is a very welcome move on the part of the Government.

I have been waiting quite a while for this sort of regulation. Glad to see it put in place.

[murlidar]

Originally Posted by KiloAlpha

The above two clauses will, in combination, formalize the used car trade. Given the lack of regulation around the business, so far, all dealers have been operating in a semi-grey area.
Car owners will now be more willing to sell their car to dealers, given that they are explicitly, by law, absolved of the responsibility once the car is delivered to the dealer. This is a very welcome move on the part of the Government.

I have been waiting quite a while for this sort of regulation. Glad to see it put in place.

The rules will come in to force from 01 April 2023.