Used vehicle ownership transfer in India: Harsh Malhotra cites reforms as EVOI ranks states

The Centre is drafting steps to make used vehicle ownership transfer easier, Minister of State for Road, Transport and Highways Harsh Malhotra said on Wednesday. Malhotra spoke during the launch of the Ease of Vehicle Ownership Index (EVOI) and a report by India Tech.org and Consumer VOICE. Malhotra said buyers and sellers still face repeated delays and confusion.

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Malhotra pointed to uneven rules and on-ground practices across states. "There are hassles and challenges in the transfer of ownership. The central government is working on policies for this...Integration of policies and their implementation across states is important,\" Malhotra said. Malhotra added that gaps in state-level policy and enforcement often create the same set of problems.

Ease of Vehicle Ownership Index highlights state gaps

Andhra Pradesh, Kerala and Tamil Nadu ranked highest on the Ease of Vehicle Ownership Index. The index compares states on regulations, online systems, process speed, and transparency. It also reviews institutional support, dealer support, and cost and affordability. The report said these indicators shape how smooth ownership transfer feels for consumers.

The report showed large time differences for RC transfer across states. In Andhra Pradesh, RC transfer usually takes 7-10 days. In Uttar Pradesh, it takes more than 30 days. The report also found that 13 out of 15 states still require paper documents. Applicants often must visit the RTO even after online filing.

Ease of Vehicle Ownership Index flags cost variations

Costs linked to vehicle ownership also varied by state, the report said. Road tax on a Rs 6 lakh petrol car ranged widely. Uttar Pradesh charged 3 per cent, while Karnataka and Telangana charged 14 per cent. This created a price gap of more than Rs 66,000 for the same vehicle.

To reduce delays, the report suggested changes to the Central Motor Vehicles Rules. It recommended fixed timelines for each step. The suggested targets included approvals in 1-2 days and RC dispatch in 2-3 days. It also proposed interstate NOCs within 2 days and road tax refunds within 14 days.

Ease of Vehicle Ownership Index survey shows transfer delays

The index included a survey of 1,000 buyers and sellers. It found many people were still waiting after completing a sale. About 39 per cent of respondents said RC transfers were pending even after selling. Only 9.6 per cent said the transfer process finished within two weeks, the report noted.

Malhotra said the government recognised these consumer issues during the index launch. The report linked many delays to mixed procedures across states and extra paperwork. It also pointed to uneven digital adoption and differing timelines at RTOs. The findings placed Andhra Pradesh, Kerala and Tamil Nadu above other states on ease measures.

With inputs from PTI