The transport department has launched a survey aimed at identifying second-hand car dealers, so they can be requested to register and be acknowledged as such.
In a recent meeting presided over by transport minister Snehasis Chakraborty, it was resolved that regional transport officers will survey to identify second-hand car dealers in their respective areas and inform them of the legal actions that will be taken should they fail to register.
Officials stated that if such car dealers continued to operate without registration, they would receive a show-cause notice, and then FIRs would be filed against them.
The move follows a preliminary finding suggesting that many car dealers buying and selling used cars in Calcutta and surrounding areas operate without a valid “used car dealer” licence.
Worse, these unlicensed dealers often entirely skip the mandatory ownership transfer process.
Under the provisions of the Central Motor Vehicles Rules, 1989, it is mandatory for a dealer of a used vehicle to register as a vehicle dealer. Without registration, it becomes almost impossible for the law-enforcing agencies to track the dealer from where a second-hand car might have been purchased, a senior official of the transport department said.
In August, the Bengal government issued a notice, advising buyers of used vehicles to always check that third-party dealers hold valid licences before proceeding with a
purchase.
A third-party refers to one who is not a direct seller. The state government had urged that buyers check whether the entity had a license as a dealer for used cars and other
vehicles.
“When the third party has a valid license, transactions can be traced through government records. Otherwise, we have no way to track these deals,” a senior Kolkata Police officer said.
The transport department issues used-car dealer licenses for a fee. Senior officials stated that applicants had to apply to the regional transport officer in their area of operation for a license.
The approval process includes verification of:
- Valid trade licenses
- Legal status of the applicant (company or individual)
- Office space and parking lot measurements
- Number of employees
- Designation of a responsible person for vehicle transactions
“The law department has drawn up a detailed format under specific sections of the Bharatiya Nyaya Sanhita (BNS) under which an FIR will be drawn up against a second-hand car dealer who has failed to register itself with the government,” the senior official said, adding: “The legal provisions have been explained to the regional transport officers who will lodge the FIRs in police stations under the respective jurisdiction.”
The transport department and the police have identified several e-commerce entities involved in buying and selling used vehicles, and there is no way to trace a transaction through the websites of these entities.
“We have also written to the ministry of road transport and highways (MoRTH) underlining the challenges that lie in tracking any transaction performed through such e-commerce websites and why it is pressing to bring such entities under a legal framework,” the official said.