Used car dealers can’t operate without registration

BENGALURU: Used car dealers in the city will be in for  a shocker. The Transport Department has come up with new rules to curb criminal activities and raise revenue. The dealers should be registered as a vehicle dealer in the state and if they are not, they can’t sell vehicles. The Transport Department has drawn up plans to enforce the rule strictly.

Additional Transport Commissioner (South) C Mallikarjun said that under the Central Motor Vehicle Rules, 1988, the Transport Department is taking steps to implement the Registered Vehicle Dealer policy in the state. Henceforth, the Transport Department will regulate the buying and selling of  used cars through garages, showrooms, through apps without permission from the respective RTO.

The department has decided to implement the Ministry of Highways and Central Transport Department’s Rule 55A in the state. Under Rule 55A, registration of vehicles is mandatory. In order to deal in the sale and purchase of pre-owned vehicles, both offline and online, pre-owned vehicle dealers must obtain an ‘authorisation’ from the relevant Regional Transport Office (RTO). Henceforth, it will be mandatory to obtain dealership permission from the respective RTO to sell second-hand cars in the state.

With Rule 55A, the government is bringing control over used car dealers, which are businesses, including apps like True Cars, Spinny, Cars24, OLX and others. All have to get dealership permission from the department to continue their business.

Use of getting dealership permission under Rule 55A

To trace the network of thieves, control criminal activities and sales.

To bring control over illegal sales and business.

The government will get revenue through ‘authorisation’ for sale of used cars.

It is convenient if the dealers are registered on the VAHAN portal; buyers can get to know about authorised showrooms, how many vehicles are available at which dealership.

Online registration helps to avoid illegal vehicle sales and violations of laws.

Many used car dealers have earlier cheated many customers by providing fake details, and there was no regulation over illegal dealers.  Rule 55A will bring all car dealers under lens, the government feels.