Selling a used vehicle without completing transfer can leave the old owner facing challans, police queries

Selling a second-hand vehicle and handing over the key does not end the seller's responsibility. If the ownership transfer is not completed, traffic challans, government notices and police questioning can reach the old owner long after the key changes hands. If a vehicle turns out to be linked to an accident or a crime, investigators first reach the name recorded on the registration certificate (RC). The seller then has to prove when the vehicle passed to someone else.

In view of these risks, the Western India Automobiles Association (WIAA) has drawn up a list of recommendations and is preparing to submit it to the Regional Transport Commissioner. It includes online transfers within a fixed time, verification of the buyer's identity, digital tracking and better coordination between the RTO and the police.

WIAA Executive Chairman Nitin Dosa said, "The RTO should ensure online ownership transfer within a fixed time, strict verification of the buyer's identity and better coordination with the police, so that the misuse of vehicles in criminal activities can be stopped." He also said, "We will appeal to the Maharashtra State Transport Commissioner to bring in clear guidelines and a tracking system that protects genuine sellers from unnecessary legal trouble when a transfer is stuck."

WIAA's first demand is that transfers be completed within a fixed time. The association wants the online process to be transparent, with an immediate receipt for the application and ownership records updated within a set deadline. The seller should be able to track the application until it is complete, and there should be a remedy if there is a delay.

The second demand concerns buyer verification and documentation of every deal. The seller should verify the buyer's identity and address, keep copies of the necessary papers, and keep a clear record of the deal, including the sale receipt, payment details and the date of handing over the vehicle. Sellers are advised to be wary of a buyer who cannot give firm proof of identity, especially in dealings with roadside second-hand vehicle dealers.

The third demand is to link RTO and police records. If a vehicle is linked to a registered crime, a secure system should let officials know the registered owner, the buyer and the recorded date of transfer. The fourth demand is to protect the seller when a transfer is stuck. Often the application stays pending even after the required papers are submitted, and the old owner's name remains in government records. WIAA wants a system that records the sale and its progress, so that the seller can show that all formalities had been completed.

Dosa said, "Buying or selling a vehicle should not expose either party to a avoidable risk. We need a system that protects genuine sellers, makes buyers fulfil their responsibilities, and makes ownership records reliable and traceable."

The fifth demand is to curb the misuse of vehicles in crime. WIAA will make a formal submission to the Regional Transport Commissioner, setting out the responsibilities of buyers and sellers and seeking easier transfers, stronger coordination between departments and reliable ownership records.

Advocate Rajdeep Lahiri, who practises criminal law, explained the legal position. According to him, under Section 50 of the Motor Vehicles Act, 1988, the responsibility to report the sale and complete the transfer lies with both the seller and the buyer. For vehicles registered in the same state, the seller generally has 14 days to give notice, while the buyer has 30 days to apply for registration in their own name.

Lahiri said that in investigations of cases such as narcotics, vehicle-assisted robbery and rape, vehicles that change hands quickly or without proper papers can come up. According to him, criminals can use a second-hand two-wheeler or four-wheeler obtained for a short time and abandon it after the crime. He said, "When these time limits are ignored and ownership is not recorded because it 'takes a lot of time' or because the vehicle was bought for a temporary purpose, the registered owner is bound to land in serious trouble."

He added, "When vehicles are seized, the police go to the last known legal owner. Citing a cash deal, a small sale or a medical emergency does not immediately clear the registered owner when a major crime is involved. That the deal was done informally does not mean ownership has ended. It has to be officially recorded and transferred through the RTO. Strict compliance and strict action in every transfer are necessary to keep innocent owners from being trapped."

Lahiri also said that a process like the Special Intensive Revision (SIR) of electoral rolls should be held for vehicles too. According to him, such an exercise could verify ownership records, identify owners who cannot be traced, and remove abandoned or unclaimed vehicles from the system. This would fill gaps in the system, increase accountability and stop the misuse of vehicles in crime.

An attempt was made to contact Maharashtra State Transport Commissioner Rajesh Narvekar, but there was no response.

Advice for buyers of second-hand vehicles, based on Dosa's recommendations: report the transfer to the registering authority within the stipulated time (under Section 50, 30 days for the buyer within the same state); match the seller's identity with the RC; match the vehicle's chassis and engine numbers with the papers; check for pending challans, outstanding loans or hypothecation, and police cases; take the RC, insurance, pollution certificate and filled-in transfer papers; keep the receipt and payment records; and get the insurance transferred to your name. Be wary of roadside dealers. Do not buy the vehicle if papers are missing or unclear or if registration details do not match. Do not drive the vehicle for long without completing the transfer, do not pay without a receipt, and do not take a vehicle on an understanding of "temporary use only" without completing the formalities.

Advice for sellers: verify the buyer's identity and address with Aadhaar, PAN or another valid ID and keep copies; make a written receipt or agreement with the buyer's details, price, payment and the date and time of handing over the vehicle; report the transfer on the parivahan.gov.in portal within 24 hours (Section 50 allows 14 days within a state); complete all formalities including Form 29 and keep the receipt and copies; track the application until the new owner shows in RTO records; take payment in a traceable way such as a bank transfer; inform the insurance company and check for outstanding challans. Do not hand over the vehicle without verifying identity and recording the deal, do not make cash or undocumented deals, do not sign blank transfer forms, do not assume that handing over the key ends your responsibility, and do not delay reporting the sale because the transfer takes time. Legal requirements continue to apply separately.