To prevent fraud, the government has introduced authorization certificates for auto sellers.

In an effort to facilitate business transactions and increase transparency, the Ministry of Road Transport and Highways (MoRTH) has created permission certificates for licensed car dealers to help them prove their legitimacy.

In order to provide a thorough regulatory environment for the used automobile market, MoRTH modified chapter III of the Central Motor Vehicle Rules, 1989 in a notification released on December 22.

The notification states that the process for notifying the dealer of the handover of a vehicle between the registered owner and the dealer has been clarified, as well as the authority and duties of a dealer who is in possession of registered automobiles.

India's market for used cars has been steadily expanding. The emergence of internet platforms for the purchase and sale of used cars has helped to expand this sector in recent years.

Numerous problems, such as disagreements over who is responsible for third-party damage liability, difficulties identifying the defaulter, etc., were present in the current environment.

Dealers now have the authority to request the renewal of the registration certificate, the renewal of the certificate of fitness, duplicate registration certificates, NOCs, and ownership transfers for the vehicles they now own.

The upkeep of an electronic vehicle trip log has been imposed as a regulatory measure, and it is to include information on the journey's purpose, driver, time, and mileage.

According to the announcement, new regulations will help identify and strengthen middlemen and dealers of registered cars and offer sufficient protection against fraudulent actions during the selling and buying of such vehicles.

Note: The new regulations will take effect on April 1, 2023.

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