The Ministry of Road Transport and Highways (MoRTH) has introduced authorisation certificates for the dealers of registered vehicles to identify the authenticity of a dealer, a move that will promote ease of doing business and transparency. The new rules will come into force with effect from April 1, 2023.

MoRTH in a notification issued on Wednesday, has amended chapter III of the Central Motor Vehicle Rules, 1989 to build a comprehensive regulatory ecosystem for the pre-owned car market aiming to ensure transparency in the sale and purchase of registered vehicles through dealers.

According to changes proposed by the MoRTH, an authorisation certificate for the dealers of registered vehicles has been introduced to identify the authenticity of a dealer.

The changes have been proposed keeping in mind the fact that in the current ecosystem, many issues are being faced during transfer of vehicle to subsequent transferee, disputes related to third party damage liabilities and difficulty in determination of defaulter. Dealers have been empowered to apply for renewal of registration certificate and renewal of certificate of fitness, duplicate registration certificate, NOC, transfer of ownership, of motor vehicles in their possession.

As a regulatory measure, maintenance of an electronic vehicle trip register has been mandated which would contain details of the trip undertaken related to trip purpose, driver, time, mileage etc. These rules will help in recognising and empowering intermediaries and dealers of registered vehicles as well as providing adequate safeguards against fraudulent activities to the selling or purchasing of such vehicles, official sources said.