Online registration to bring transparency during vehicle registration

Most of us know how messy and time consuming registering a new car or motorcycle is. Sometimes the dealer makes you wait for your new vehicle or sometimes you are overcharged and you don't really notice it. Things might change over the next few years, thanks to an initiative called dealer point registration system, currently run by the Department of Transport Uttar Pradesh.

Online Dealer Point Registration (collection of Application in form-20 with fees and tax for Registration) is a step towards decentralising the digitisation of registration data and eliminating cash handling at the RTO cash counter that makes the registration process more simplified and faster. This is done to execute the CMV Rule 42, which says a Trade Certificate Holder shall not deliver the vehicle to the purchaser without registration of the vehicle whether it is permanent or temporary.

If a vehicle is not registered within seven days of purchase, the buyer ends up paying the RTO a late fee to the tune of five per cent of the cost of the vehicle. In most cases, while dealers get the payment from buyers, they are not quick to transfer it to the treasury for registration, passing on the late fees to the buyer, which is fundamentally wrong. 

Apart from the ex-showroom and VAT, the buyer has to additionally pay Rs 300 as RTO charges. Most of the times dealers are seen inflating this amount and billing them to the buyer and the unsuspecting buyer pays it without questioning. Using this new system, the malpractices done by the dealer will go down drastically, but the problem here is that it is not mandatory for dealers to register on this system.  While its easy and convenient to use this system, it’s the thirst to earn more money  that makes the dealer use the traditional system that has many loopholes.

We really appreciate the Uttar Pradesh government taking this initiative and we would love to see this system becoming a standard system via a new policy from the central government. At the end, it’s the consumer who will benefit the most and that’s what this government has to work towards, right?