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A Delhi tribunal questioned however a commercialized conveyance could beryllium sold repeatedly without corresponding changes successful the RC.
A roadworthy mishap involving a commercial ‘Gramin Sewa’ vehicle successful Delhi has exposed glaring loopholes successful India’s conveyance ownership transportation system after the conveyance changed hands multiple times without the Registration Certificate (RC) being updated. The contented came into absorption aft a Delhi Motor Accident Claims Tribunal flagged the lawsuit successful an bid dated May 12 while deciding a compensation assertion arising from a 2022 mishap involving the uninsured vehicle. In the order, Judge Dr. Abhilash Malhotra questioned however a ‘Gramin Sewa’ vehicle, whose licence is issued lone aft owed diligence successful the sanction of the registered owner, could alteration hands multiple times without the RC records being updated. The tribunal noted that the conveyance was archetypal sold by the registered proprietor to different person, who subsequently sold it again earlier it yet came into the possession of a 3rd owner. Despite the successive transactions, the RC records were ne'er updated. Calling the concern alarming, the tribunal said the transactions violated Section 50 of the Motor Vehicles Act, 1988, which mandates that transportation of conveyance ownership beryllium formally recorded with transport authorities wrong the prescribed period. The tribunal besides questioned wherefore transport authorities failed to detect ownership discrepancies during licence renewals and yearly fittingness certification, peculiarly for commercialized vehicles that operate under stricter regulatory requirements. “There is an urgent request to plug these loopholes,” the tribunal observed, directing the Delhi Police and the State transport authorization to deliberate connected policy measures and germinate a mechanism for sharing accusation connected unauthorised vehicle sales. Outdated and inconsistent framework According to an autarkic CRISIL study published successful July 2025, income of utilized cars successful India are expected to transverse six million units. However, the lawsuit has renewed attention on delays and failures successful RC transfers. Under the existing ineligible framework, liability for a conveyance remains with the idiosyncratic whose sanction appears connected the RC, irrespective of whether the conveyance has been sold. As a result, nonaccomplishment to grounds ownership transfers tin permission the archetypal proprietor exposed to liabilities arising from accidents, traffic violations or criminal misuse of the vehicle. Yashvardhan Verma, Head of Public Policy and Corporate Affairs astatine Cars24, told The Hindu that wide delays successful RC transfers and the lack of uniform national standards proceed to plague the system. Mr. Verma said neither the Central Motor Vehicles Rules (CMVR) nor astir State regulations prescribe fixed timelines for registering authorities to implicit RC transfers oregon different RTO services, resulting successful prolonged delays and ineligible uncertainty for buyers and sellers. Citing manufacture data, including that of Cars24, helium said less than 70% of RC transfers are completed adjacent wrong 60 days, portion respective cases instrumentality years, leaving sellers susceptible during the intervening period. Security concerns In December past year, the Delhi High Court questioned the Delhi authorities implicit its nonaccomplishment to modulate the merchantability and transportation of utilized vehicles, portion referring to the usage of a second-hand car successful the weaponry blast adjacent the Red Fort. “A car changes 4 hands but the archetypal proprietor has not changed. Therefore, what happens? That man (the archetypal owner) goes to the slaughterhouse? What is this? How are you permitting this? You volition instrumentality a telephone erstwhile two-three more weaponry blasts instrumentality place?” the court had asked the Delhi government’s counsel. The car utilized successful the blast connected November 10, 2025, had changed hands aggregate times, but the changes were not reflected successful the authoritative records. Mr. Verma besides flagged instrumentality enforcement concerns, saying vehicles with incomplete ownership transfers are often exploited for amerciable activities. He further pointed to non-standardised documentation requirements arsenic another major hurdle successful RC transfers. “The database of documents required for most RTO services is generally codified in the CMVR or State motor conveyance rules. However, most RTOs inactive routinely demand additional documents astatine the clip of the visit,” helium said.
Published - May 25, 2026 01:02 americium IST
