MVD to blacklist unauthorised pre-owned vehicle dealers

Aimed at ensuring business transparency and lawful vehicle resale, the Motor Vehicles department (MVD) is planning to blacklist pre-owned vehicle dealers who do not possess proper authorisation certificates, as recommended by the Ministry of Road Transport and Highways.

The latest directive from the State Transport Commissioner, based on the Union government’s instructions, confirms that legal action will be taken against such dealers and their units if they fail to secure the certificate by March 31.

MVD officials say that the authorisation process is now part of the latest government guidelines, which mandate that a pre-owned vehicle dealer in the State must become the deemed owner of a pre-registered vehicle in custody and remain accountable for its legal usage until it is eventually sold to a future buyer. The dealer will also be held responsible for any malpractices during the process, they add.

Since 2022, the Ministry of Road Transport and Highways has been actively formulating new guidelines and amending existing laws to make the pre-owned vehicle market more transparent. To regulate pre-owned vehicle dealers, it has even amended the Central Motor Vehicles Rules, recommending the issuance of authorisation certificates.

“Applications for the authorisation certificate can be submitted online through the official portal—www.parivahan.gov.in. Circulars have already been issued to Regional Transport officers and Enforcement wings to ensure compliance by the establishments concerned,” said a senior MVD official. He also said that purchasing vehicles from unauthorised establishments would be considered a violation of the rules.

Details on securing the authorisation certificate have already been published on the Parivahan portal. The application fee is ₹25,000, and all eligible applicants will receive the certificate within a month. For lawful operations, pre-owned vehicle dealers must display this certificate in their showrooms. Additionally, they must ensure proper parking space for their vehicles while obtaining certification. 

Meanwhile, some of the leading pre-owned vehicle dealers confirm that a majority of organised dealers in the sector have already secured the authorisation certificate for lawful operations. They claim that the stringent regulations and enforcement activities will primarily impact illegally operating units that fail to comply with standard norms and regulations.