Dealers in second-hand vehicles have to obtain a licence for buying and selling such vehicles from the transport department by the end of April, the state government has decided.
The dealers now do not need a separate licence from the state government to buy and sell used vehicles.
A notification issued earlier this month said dealers in used vehicles will have to collect a “valid authorisation certificate” from a registering authority (the road transport office concerned) in whose jurisdiction the trader has “a place of business”.
The secretary of the state transport department, Saumitra Mohan, has issued the notification and a copy has been sent to all regional transport officers and district magistrates.
While “new entities” will have to obtain a licence before starting their business, existing ones will have to “apply for obtaining a licence by 30.4.2023”, the notification states.
Senior officials said the decision that dealers in used vehicles must have a specific licence was taken following a surge in complaints from buyers of such vehicles, who say they face harassment after purchasing an old vehicle.
“Many buyers of old cars have complained that they have been caught unawares about pending traffic fines and other dues. Several of them said they have been receiving letters from various agencies, including police, about unpaid fees,” said an official in the transport department.
“Once a dealer bags the licence to operate, he will be accountable for everything after purchasing a vehicle from a person or an agency.”
Kolkata has been witnessing a sudden rise in the number of dealers in cars. Some of them deal in the entire range of products, from the humble hatchback to the luxury sedan.
The number has gone up post-pandemic with many considering to buy used cars for their daily commute.
Used cars with “For Sale” boards placed on the windshield remain parked along thoroughfares, including the Rashbehari Avenue connector and the Prince Anwar Shah connector in south Kolkata, for prospective customers to check out.
Several dealers offer “expert certification” on used cars that are up for resale and even arrange for finance witheasy documentation, officials in the transport department said. The state government has drawn up a Standard Operating Procedure for these dealers, which states that authorised dealers may be allowed to keep registered vehicles on “closed premises” that are owned by the person or taken on a long-term lease.
On the first working day of every week, the authorised dealers have to produce relevant documents “before the registering authority” along with “photo identification of the transferer”.
The transferee “will have to confirm in person the signature of the registered owner of the vehicle either physically or electronically,” it specifies.