The Bengal government has issued an appeal to buyers of used vehicles: always verify that third-party dealers have valid licences before making any purchase.

The advisory follows the transport department’s receipt of multiple complaints from individuals who sold their vehicles but continued to receive traffic violation notices. This, officials in the transport department said, is because ownership transfers were likely not completed properly.

“If someone is buying a used vehicle from a third party — who is not the direct seller — please check whether the entity has a licence as a dealer for used cars and other vehicles,” said a senior transport department official. “When the third party has a valid licence, transactions can be traced through state government records. Otherwise, we have no way to track these deals.”

The problem

The issue became apparent when vehicle sellers began receiving notices from the police across states for violations they never committed. In some cases, former owners received letters from Bihar Police, alleging their sold vehicles were being used by bootleggers to transport illegal liquor in the dry state.

“Some of these vehicles were sold right here in Calcutta,” the transport
official added.

A preliminary survey revealed that many third-party agents buying and selling used cars in Calcutta and surrounding areas operate without valid “used car dealer” licences. Worse, these unlicensed dealers often skip the mandatory ownership transfer process entirely.

Licensing needs

The transport department issues used car dealer licences for a fee. Applicants must apply to the regional transport officer in their area of operation.

The approval process includes verification of:

• Valid trade licences
• 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 idea is to fix responsibility,” the official said.

Transfer costs

Ownership transfer fees vary by vehicle type and age:

• Two-wheelers: ₹600-800
• Cars: ₹1,500-5,000

These fees must be paid directly to the regional transport officer overseeing the transaction area.

Enforcement challenges

Senior police officers report difficulty investigating crimes involving vehicles sold through unlicensed dealers. Without proper documentation, transactions cannot be traced, and some sellers have denied their sales entirely, challenging the police to prove that any financial exchange had occurred.

Online deal risks

Transport officials noted that many online vehicle sales involve buyers and sellers who are unaware of proper ownership transfer procedures, thereby creating additional risks for both parties.

The department’s message to consumers is clear: before completing any used vehicle purchase through a third party, verify their dealer licence. The small additional cost of using licensed dealers far outweighs the potential legal complications from incomplete ownership transfers.