Today, the Delhi High Court expressed serious concern over the Delhi government’s failure to effectively regulate the sale and transfer of used vehicles, warning that regulatory lapses in the second-hand car market could have grave public safety consequences.
The Court was hearing a public interest litigation filed by Towards Happy Earth Foundation, which highlighted shortcomings in the implementation of Rules 55A to 55H of the Central Motor Vehicles Rules. These rules, introduced in December 2022, were meant to regulate authorised dealers dealing in registered (used) vehicles and ensure accountability in their transfer.
A Division Bench comprising Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela noted that despite the regulatory framework, the used-vehicle market remains largely unmonitored. The Bench referred to a recent bomb blast near the Red Fort, observing that the offence was allegedly carried out using a second-hand vehicle that had changed hands multiple times but continued to remain registered in the name of the original owner.
Appearing for the Petitioner, Advocate Samar Bansal submitted that the amended rules have failed in practice due to significant regulatory gaps. He pointed out that there is no statutory mechanism to record or track dealer-to-dealer transfers of used vehicles, even though, in reality, most vehicles pass through several dealers before reaching a final buyer.
The plea argued that the Rules recognise only the first transfer from the owner to an authorised dealer, causing the chain of custody to break thereafter. This, the Petitioner contended, defeats the very objective of accountability and traceability. It was further submitted that because of these shortcomings and procedural hurdles, only a negligible number of used vehicle dealers across India have been registered as authorised dealers. In Delhi, the petitioner claimed, not a single dealer has obtained such registration, resulting in lakhs of vehicles circulating without clarity on actual possession.
Taking note of these submissions, the Bench made strong oral observations, questioning how vehicles could change multiple hands while remaining registered in the name of the original owner. The Court remarked that such a situation exposes original owners to serious consequences and reflects a systemic failure. Emphasising the gravity of the issue, the Bench cautioned that authorities should not wait for further serious incidents before taking corrective action.
The Court also referred to the Red Fort incident to underline how regulatory failures in tracking used vehicles could have implications for public safety and national security.
The Delhi High Court directed the Delhi government to file a detailed counter-affidavit addressing the concerns raised in the PIL. Making it clear that no further adjournments would be granted, the Court listed the matter for further hearing in January 2026.
Disclaimer: This news/ article includes information received via a syndicated news feed. The original rights remain with the respective publisher.
Picture Source :
