The Motor Vehicles Department plans to act against sub-dealers of automobile dealers and agents involved in the illegal sale of motor vehicles and collection of handling and service charges from owners.
The intervention comes in the wake of complaints that the sub-dealers are putting pressure on the owners to take insurance and loan from firms of their interest.
Free helmets are not being provided to those purchasing motorcycles and accessories to those buying cars. There are numerous complaints of motorcycles being sold at exorbitant rates. Transport Commissioner Tomin J. Thachankary said the sub-dealers and agents were doing an illegal business with “the support and blessings” of vehicle dealers. The department had found that bonafide dealers were opening outlets in the nook and corner of the State, violating rules to increase sales. The sub-dealers and agents were also flouting the rules made stringent following the unearthing of a racket that collected handling and services charges estimated at Rs.320 crore from vehicle owners in December last violating the trade certificate.
As per Section 35 of the Central Motor Vehicle Rules of 1989, the trade certificate for selling motor vehicles can be given only to bonafide dealers approved by the vehicle manufacturers.
The rules insist that the dealer register and deliver the vehicle. The ex-showroom price covers vehicle cost, insurance, road tax, cess, and registration fee. The manufacturer also takes care of the initial fuel cost and pre-delivery inspection. The trade certificate being issued by the RTO is mandatory for the dealer to sell vehicle. The registration is based on form 21 issued by the vehicle manufacturer or the dealer.
