Winning Bizness Desk
Mumbai.Moving an old vehicle from one state to another may soon become a far simpler process as the Union government considers removing the mandatory no objection certificate (NOC) requirement. The proposal has been suggested by a high-level committee set up by NITI Aayog, which has sent its recommendations to the Ministry of Road Transport and Highways (MoRTH). If implemented, the change could significantly reduce paperwork and delays faced by vehicle owners who relocate or sell vehicles across state borders.
Current rule requires NOC from original RTO
Under the existing provisions of the Motor Vehicles Act, 1988, particularly Section 47, a vehicle registered in one state can be used in another state for up to one year. However, if the owner intends to continue using the vehicle beyond that period, it must be registered in the new state.
For this process, the owner must obtain a no objection certificate from the Regional Transport Office (RTO) where the vehicle was originally registered. The requirement has often been criticised as cumbersome because procedures vary from state to state and involve several documents.
Key documents usually required include:
- Registration certificate of the vehicle
- Valid fitness certificate issued by the RTO
- Road tax payment receipts and related records
- Identity and address proof of the vehicle owner
Transport officials say the process can take several weeks, particularly when records have to be verified manually.
Purpose of NOC in inter-state transfer
The NOC essentially confirms that there are no pending taxes, fines, or legal disputes linked to the vehicle in the original state. Without this clearance, a vehicle cannot be re-registered in another state.
The certificate is also important in the second-hand vehicle market. Buyers often insist on it to ensure that the vehicle does not carry unpaid road tax, traffic violations, or criminal cases linked to it. However, industry experts argue that the physical certificate system has become outdated in the age of digital vehicle records.
Proposal for auto generated clearance system
The NITI Aayog committee has recommended replacing the manual NOC process with an auto generated digital clearance system. Since the records of vehicles across India are already stored in the centralised VAHAN database, transport authorities in one state can directly access the data of vehicles registered elsewhere.
Under the proposed mechanism:
- RTO officials will digitally verify tax payment records
- Pending challans or penalties will be automatically checked
- Any legal or criminal record linked to the vehicle will appear instantly
This system would eliminate the need for vehicle owners to physically approach their original RTO to obtain clearance before applying for re-registration in another state.
Central database may reduce paperwork for owners
Officials believe that the digital verification system could streamline inter-state vehicle transfers and reduce bureaucratic hurdles. Since VAHAN already integrates vehicle data from across the country, authorities can instantly verify the authenticity of documents and ownership details.
If the proposal is accepted by the transport ministry, the entire process of transferring vehicles across states may become faster and more transparent. It could also reduce the workload on RTO offices and cut down on the time citizens spend on paperwork.
Panel suggests change in rule for old vehicles
The committee has also recommended a significant change in the way older vehicles are regulated in India. Instead of removing vehicles from roads purely on the basis of age, authorities may evaluate them based on their mechanical fitness.
The recommendation reflects practices followed in several countries where vehicles are allowed to remain on the road as long as they pass mandatory fitness tests.
Key points in the suggestion include:
- Vehicle fitness to determine road eligibility
- Age alone should not decide scrapping of vehicles
- Periodic inspections to ensure safety and emission compliance
If adopted, the change could impact millions of vehicle owners whose cars or two-wheelers are approaching the 15-year age limit, offering them a chance to continue using their vehicles provided they remain roadworthy.
