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• Big decision of Central Govt
• Strict action now on illegal vehicle sales
• Know the new rules

RTO Vehicle Sale Rules: The Regional Transport Office (RTO) has made it mandatory to obtain licenses to prevent unauthorized brokers operating in the market of buying and selling of old two-wheelers and four-wheelers, and to prevent cheating of customers. According to the Central Government’s new notification, it is legally mandatory for those doing the business of buying and selling or exchanging old vehicles to get proper approval, and direct legal action will be taken against those doing business without a license.

New rules for consumer safety in buying and selling vehicles

The central government has implemented this regulation to bring transparency in the sale and purchase of old vehicles and increase the safety of consumers. Accordingly, it has been made mandatory for all persons and establishments dealing in old vehicles to obtain a Registered Vehicle Dealer’s Authorized Letter (Form 29C) certificate. No one can be aged anymore without this letter. The business of buying and selling vehicles cannot be done.

There are many big and small dealers selling two wheelers and four wheelers in various parts of the city. However, this market had several serious flaws. Often, even after the car is sold, it is not registered in the name of the buyer. Transactions were conducted only by issuing ‘NOC’. Since the name of the vehicle was not changed even after the vehicle was sold, the original owner faced a police inquiry in case of any crime or accident involving the use of the vehicle. Sometimes there were complaints of stolen cars or cars being sold by tampering with documents. All these problems will be completely curbed by the new rules.

Procedure of vehicle transfer from RTO

• To obtain a license from the RTO and legalize the transfer of vehicles, the dealers of old vehicles have to apply to the RTO in ‘Form 29A’.
• After receiving the application, the motor vehicle inspector of the RTO will visit the concerned establishment and inspect it.
• Eligible sellers will be issued ‘Form 29C’ as authorized sale certificate as per ‘Form 29B’.
• This allows the car dealer to directly register the car in his own name as soon as he buys the car from the original owner.
• This will make it easier and safer to sell the car to a new customer.