Centre Prepares Fresh Rules for Used Vehicle Ownership Transfer, Harsh Malhotra Confirms Minister of State for Road, Transport and Highways Harsh Malhotra announced that the Centre is drafting policies to streamline used vehicle ownership transfers. Findings from the Ease of Vehicle Ownership Index show severe delays and extensive paperwork persist across most states. 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. What this means for you Buyers and sellers of pre-owned vehicles can expect significant relief from bureaucratic delays and mandatory physical visits to regional transport offices. • Across India: Standardised central guidelines will help streamline RC updates and interstate NOC generation across all states. This reduces the legal and liability risks sellers face when vehicle titles remain unchanged for months after a transaction. • In Andhra Pradesh: Motorists enjoy the fastest transfer timeline in the country, wrapping up registrations within 7 to 10 days. Consumers here face substantially less administrative friction compared to other parts of India. • In Uttar Pradesh: Vehicle owners pay one of the lowest road tax rates at 3 per cent on a Rs 6 lakh petrol car. However, local buyers must contend with transfers exceeding 30 days until proposed turnaround timelines take effect. • In Karnataka and Telangana: Buyers pay a steep 14 per cent road tax, creating a price gap of over Rs 66,000 compared to lower-tax states. If reformed, streamlined rules will guarantee interstate road tax refunds within a 14-day window. Why this happened The operational difficulties in transferring used vehicle ownership stem from fragmented state regulations and unequal digital adoption across RTOs. Despite central digital portals, mandatory physical paperwork and offline verifications continue to slow down approvals. • Direct Cause: Inconsistent state-level administrative procedures and varying degrees of digital integration create major operational bottlenecks. Consequently, citizens must visit RTOs in person even after completing online applications. • Mandatory Physical Documentation: Thirteen out of fifteen evaluated states still require physical paper files for verification. The absence of an end-to-end paperless pipeline leaves applications stuck in manual review queues for weeks. • Divergent Tax Schedules and Deadlines: Road tax rates fluctuate drastically between 3 per cent and 14 per cent, while processing times range from 7 to over 30 days depending on the state. To resolve these friction points, the central government is formulating uniform rules under the Central Motor Vehicles Rules. Questions & Answers 1. What regulatory reform is the Centre planning for used vehicle transfers? Minister of State for Road, Transport and Highways Harsh Malhotra confirmed that the central government is drafting policies to make vehicle ownership transfer simpler and uniform. 2. Which states ranked highest in the Ease of Vehicle Ownership Index? Andhra Pradesh, Kerala, and Tamil Nadu topped the index based on their regulatory efficiency, digital systems, and process transparency. 3. How wide is the gap in RC transfer timelines across states? While RC transfers in Andhra Pradesh take 7 to 10 days, the same process takes more than 30 days in Uttar Pradesh. 4. How significantly does road tax vary for identical vehicles across states? A Rs 6 lakh petrol car incurs a 3 per cent tax in Uttar Pradesh compared to 14 per cent in Karnataka and Telangana, creating a price gap over Rs 66,000. 5. What turnaround timelines did the report propose for vehicle administration? The report recommended approvals within 1 to 2 days, RC dispatch in 2 to 3 days, interstate NOCs within 2 days, and tax refunds within 14 days. 6. What did the consumer survey reveal regarding ownership transfer delays? Around 39 per cent of respondents reported pending RC transfers post-sale, and only 9.6 per cent saw their transfer completed within two weeks. https://trendkia.com/en/money/purani-gariyon-ke-malikana-haka-transaphara-ke-niyama-badalegi-kendra-sarakara-harsh-malhotra-ne-di-janakari-56644 TrendKia — Har trend, sabse pehle.