The Transport Department has flagged widespread violations by second-hand vehicle sellers operating without mandatory authorisation, warning that such practices are leading to improper ownership transfers and unresolved vehicle records in the national VAHAN database.
In an official communication, the department stated that several individuals and establishments engaged in the sale and purchase of used motor vehicles are conducting business without obtaining a valid Dealer Authorisation Certificate (DAUC), a requirement under the Central Motor Vehicles Rules, 1989. The absence of authorisation has resulted in irregular documentation, delays in ownership transfer and the continued pendency of vehicle details in official records.
The department clarified that Rules 55A to 55E of the Central Motor Vehicles Rules, 1989, clearly prohibit any individual or firm from buying, selling, stocking or facilitating the transfer of ownership of second-hand motor vehicles without prior authorisation granted by the Registering Authority. These provisions apply uniformly to all dealers involved in the used vehicle trade.
According to the department, the rules lay down detailed procedures governing eligibility conditions, responsibilities of authorised dealers, validity of certification and compliance requirements. Authorised dealers are required to maintain proper records, ensure timely online transfer of ownership and strictly follow VAHAN-related processes to prevent discrepancies in vehicle registration data.
Officials noted that unauthorised operations often leave vehicles legally registered in the name of previous owners, exposing both buyers and sellers to future legal, financial and criminal liabilities. In several cases, pending ownership transfers have caused complications related to insurance claims, traffic violations and taxation records.
The Transport Department has warned that strict enforcement action will be initiated against persons or establishments found purchasing or selling used vehicles without a valid Dealer Authorisation Certificate. Enforcement agencies have been directed to identify and proceed against violators in accordance with the provisions of the law.
In addition to enforcement measures, the department has issued an advisory to the general public, urging buyers and sellers of second-hand vehicles to transact only through dealers holding a valid DAUC. Members of the public have been cautioned that dealing with unauthorised sellers could result in unresolved ownership issues and long-term legal consequences.
The department emphasised that compliance with the authorisation framework is essential to ensure transparency, accountability and accuracy in vehicle registration records. Proper regulation of second-hand vehicle dealers, officials said, is also critical to maintaining the integrity of the VAHAN database and preventing misuse of motor vehicle registrations.
The Transport Department reiterated that adherence to statutory requirements under the Central Motor Vehicles Rules is mandatory and that ignorance of the law will not be accepted as a defence in cases of violation.
