MoRTH: Used car dealers be deemed owners of the vehicles

The revised rule is aimed at promoting ease of doing business and increasing transparency.

The Ministry of Road Transport and Highways (MoRTH) has issued a drag notification proposing that used car dealers should be deemed as owners of the vehicles they have in their inventory.

As per the notification, the owner of the vehicle, who is selling the car to a dealer, will have to notify the RTO about the change of ownership. Once the car is acquired, the dealer will have to get an authorisation certificate for the registered vehicle, which will be valid for 5 years.

Vehicles part of the inventory will only be allowed to ply on roads for test drives, maintenance and updating PUC certificates. The dealer will also have to maintain a trip register for each vehicle.

The dealer will be responsible for any accident once the authorisation certificate has been issued. Failure to comply with the rules could lead to the suspension or cancellation of the authorisation certificate.

The revised rule is aimed at promoting ease of doing business and increasing transparency.

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