Used vehicle dealers responsible for incidents until name transfer

Chennai: Dealers in used cars and two-wheelers will henceforth be responsible for any incident involving the vehicles from the time they acquire them and till they are registered in the name of new buyers.

Tamil Nadu’s transport commissioner A Shanmuga Sundaram on Monday issued a directive making dealers responsible for the vehicles as soon as they buy them.

This responsibility includes ensuring ownership is transferred without delay. But even when owners sell their cars through online used-car retailing platforms, the process to transfer registration can take up to six months.

Citing provisions in the Central Motor Vehicle Act, the commissioner said dealers will be accountable for all incidents involving the vehicles until the ownership transfer is complete.

To implement this policy, Shanmuga Sundaram instructed all regional transport offices (RTOs) to issue authorisations to automobile dealers and enforce the rule rigorously. Tamil Nadu has about 30,000 dealers, and this regulation is expected to generate significant revenue, estimated at nearly 60 crore.

The move follows frequent complaints that people face legal cases even years after they sold their vehicles, when these are involved in traffic violations or used for criminal activities. A recent case was the 2022 Coimbatore blast case. National Investigation Agency (NIA) found that the car involved in the explosion was still registered in the name of a man from Pollachi, although it had been changed hands multiple times.

As a result, both sellers and buyers frequently end up in court to clarify transactions. For example, Subash from Anna Nagar continues to receive traffic violation notices for a car he sold long ago, indicating the ownership was never transferred.

The initiative was spurred by K Kathirmathiyon, a transportation activist, whose complaint highlighted the issue. “Although the Union road transport ministry had introduced a similar rule previously, its application was inconsistent. In June 2023, some automobile dealers in Coimbatore faced delays in their authorization as officials were not fully aware of the new rule,” said Kathirmahtiyon.

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