The state government has made the rules stricter for dealers who buy and sell second-hand vehicles. Now, every dealer must obtain an official dealer authorization from the Transport Department before purchasing or selling any used vehicle.
The Transport Department has also announced that a statewide inspection drive will begin from January 1. Dealers operating without a valid authorization letter will face strict legal action.
Mandatory Instructions from the Transport Department
The Transport Commissioner has instructed the Indore RTO to ensure that all used-vehicle dealers obtain authorization letters and to carry out regular inspections. Around 100 dealers in the district are currently involved in the sale and purchase of second-hand vehicles, and licenses will now be compulsory for all of them.
Under the new rules, when a vehicle owner sells their vehicle to an authorized dealer, Form 29-C must be submitted as per the Central Motor Vehicles Rules.
Dealer Will Bear Legal Responsibility
Once the RTO receives Form 29-C, the dealer will be considered the deemed owner of the vehicle. This change mainly benefits the original vehicle owner, as all legal responsibilities will end once the vehicle is handed over to the authorized dealer.
If the vehicle is later involved in an accident or misused, the dealer will be held responsible, not the original owner.
Showroom Operators Also Need Authorization
Showroom operators will also be required to obtain a license. This rule applies to new-vehicle showrooms that also deal in used vehicles, as well as to those offering vehicle exchange facilities.
Dealers can register on the vehicle portal through NIC by paying a fee of ₹25,000 to obtain the required authorization.
