How to transfer vehicle ownership in India: A comprehensive guide

Transferring vehicle ownership in India is a crucial process governed by the Motor Vehicles Act, 1988. It ensures the new owner is legally registered as the rightful owner of the vehicle. So, let’s figure out the steps, compliance rules, documents, and processes to simplify vehicle ownership transfer in India.

Why is vehicle ownership transfer important?

1. Legal compliance: Section 50 of the Motor Vehicles Act, 1988 mandates the transfer of vehicle ownership upon sale, death, or auction to ensure updated records with the registering authority.

2. Avoid liabilities: Ensures the previous owner is not held accountable for traffic violations, accidents, or other liabilities associated with the vehicle.

3. Smooth resale: Simplifies future resale and motor insurance claims under the correct ownership details.

Types of vehicle ownership transfers

Steps to transfer vehicle ownership in India

Follow these steps to ensure a successful transfer of ownership:

Obtain the required documents

Collect all necessary documents as per Rule 55 of the Central Motor Vehicle Rules, 1989, from both the seller and the buyer.

Documents required from the seller:

● Original registration certificate (RC) as per Rule 48.

● Pollution under control (PUC) certificate.

● Valid insurance certificate, as mandated by Section 146.

● Form 28 (No Objection Certificate) for inter-state transfer under Section 48.

● Form 29 and Form 30 (notice of ownership transfer) under Rule 55.

Documents required from the buyer:

● Address proof (e.g., Aadhaar card, voter ID).

● Passport-size photographs.

● PAN card or Form 60 (if PAN is not available).

Submit the application at the RTO

Submit the application for ownership transfer at the regional transport office (RTO) where the vehicle is registered, as per Section 50(2) of the Motor Vehicles Act, 1988.

Steps:

● Fill out and sign Forms 29 and 30 (as per Rule 55).

● Attach the collected documents.

● Pay the applicable transfer fees prescribed under Rule 81.

Fees: Ownership transfer fees typically range from ₹150 to ₹500, depending on the vehicle type.

Pay road tax (if applicable)

For inter-state transfers, the new owner must pay road tax in the new state, as mandated by Section 47 of the Motor Vehicles Act, 1988. Refunds for the previously paid tax can be claimed from the original state.

Verification and approval

The RTO verifies the documents and may inspect the vehicle under Rule 81 and Rule 82. Upon successful verification, the transfer is approved.

Time frame: The RTO typically processes the application within 15-30 days.

Inter-state vehicle ownership transfer

Transferring ownership across states involves additional compliance steps under Section 47 and Section 48 of the Motor Vehicles Act, 1988:

Obtain a No Objection Certificate (NOC)

The seller must apply for an NOC using Form 28 under Rule 55, ensuring no dues are pending on the vehicle in the original state.

Pay road tax in the new state:

The buyer must re-register the vehicle in the new state by paying applicable road tax. The new RTO will issue a new registration number under Rule 54.

Apply for re-registration:

The buyer must complete re-registration with the new RTO using Form 20 and Form 33.

Compliance rules and penalties

1. Failure to transfer ownership: Under Section 50(4), failing to transfer ownership within 30 days of purchase may result in penalties.

2. Non-payment of road tax: As per Section 47, non-payment of road tax during inter-state transfers may lead to fines and vehicle impoundment.

3. Document forgery: Submitting fake or incomplete documents violates Section 192A and can attract fines or imprisonment.

Conclusion

Transferring vehicle ownership in India is a legally mandated process governed by the Motor Vehicles Act, 1988. Adhering to the prescribed rules ensures a smooth transfer while avoiding legal and financial complications. For inter-state transfers, additional compliance, such as obtaining an NOC and re-registration, is necessary. Complete the process on time, maintain all records, and drive stress-free with updated ownership details. Let’s keep the wheels moving safely and legally!

Frequently asked question (FAQs)

1. What is the cost of vehicle ownership transfer?

Fees range between ₹150 and ₹500 for most vehicles, depending on the RTO and vehicle type.

2. How long does the transfer process take?

The process typically takes 15-30 days, depending on the RTO.

3. Can I transfer ownership online?

Some states allow online applications through the Parivahan portal under the Ministry of Road Transport and Highways.

4. What happens if ownership is not transferred?

The previous owner remains liable for any legal, financial, or traffic violations under Section 50.