The central government is preparing new regulatory measures to simplify the transfer of used vehicle ownership across the country. Minister of State for Road, Transport and Highways Harsh Malhotra confirmed the initiative on Wednesday during the launch of the Ease of Vehicle Ownership Index, alongside a comprehensive study prepared by India Tech.org and Consumer VOICE. The upcoming policy framework aims to eliminate administrative bottlenecks and persistent confusion faced by citizens when buying or selling pre-owned automobiles.
State-Level Disparities Complicate Vehicle Transfers
Addressing the operational bottlenecks on the ground, the minister highlighted that divergent state practices continue to hinder seamless transactions. Harsh Malhotra remarked, "There are hassles and challenges in the transfer of ownership. The central government is working on policies for this...Integration of policies and their implementation across states is important." He pointed out that regulatory gaps and uneven administrative enforcement at the state level regularly subject consumers to repeated procedural hurdles.
Southern States Lead the Ease of Vehicle Ownership Index
The Ease of Vehicle Ownership Index placed Andhra Pradesh, Kerala, and Tamil Nadu at the top of national performance rankings. The study evaluated states across key parameters, including regulatory consistency, digital system efficiency, overall turnaround speed, and administrative transparency. The evaluation also factored in institutional support frameworks, dealer assistance mechanisms, and the affordability of transaction expenses, demonstrating that robust digital adoption directly improves consumer satisfaction during ownership transfers.
Widespread Discrepancies in RC Transfer Timelines
The comparative data revealed stark differences in the time required to complete Registration Certificate transfers across state lines. In Andhra Pradesh, an RC transfer typically takes between 7 and 10 days to conclude. By contrast, motorists in Uttar Pradesh must navigate delays exceeding 30 days for identical transactions. Furthermore, the report revealed that 13 out of 15 evaluated states still demand physical paper documentation, compelling applicants to visit Regional Transport Offices in person despite having submitted applications online.
Tax Variations Create Disparity of Over Rs 66,000
Financial liabilities associated with vehicle ownership also demonstrate dramatic variations depending on the state of registration. For instance, the road tax assessed on a Rs 6 lakh petrol car ranges widely across regional jurisdictions. While Uttar Pradesh levies a modest 3 per cent tax rate, both Karnataka and Telangana charge 14 per cent on the same vehicle. This substantial tax divergence results in an effective price gap exceeding Rs 66,000 for the exact same car model simply due to regional tax schedules.
Proposed Amendments to Central Motor Vehicles Rules
To eliminate procedural delays, the report put forward concrete recommendations to modify the Central Motor Vehicles Rules by establishing binding timelines for every regulatory milestone. The suggested schedule proposes that official approvals be completed within 1 to 2 days, followed by physical dispatch of the updated RC within 2 to 3 days. Additionally, the recommendations propose issuing interstate No Objection Certificates within 2 days and ensuring road tax refunds are disbursed within a strict 14-day window.
Consumer Survey Exposes Widespread Pending Cases
The findings included an empirical survey of 1,000 vehicle buyers and sellers, which documented significant post-sale vulnerability among consumers. Approximately 39 per cent of respondents stated that ownership records remained pending long after the financial transaction and physical handover were finished. Only 9.6 per cent of participants reported that their ownership transfer was resolved within two weeks. These statistics underline how uneven RTO digital systems and excessive paperwork continue to affect automotive transactions across the country.
