Delhi govt cracks whip on black-marketing of auto-rickshaws

New Delhi: The Delhi government on Tuesday issued an order to prevent direct transfer of permits and vehicles to a new buyer in case of default of loans

New Delhi: The Delhi government on Tuesday issued an order to prevent direct transfer of permits and vehicles to a new buyer in case of default of loans.

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The measure, according to transport minister Kailash Gahlot, was taken to curb black marketing of autos by financiers to end harassment of auto drivers. “Despite an Act and Rule mandating the same, a lot of genuine loan defaulters are being harassed by financiers. Our government believes in fighting against all such types of corruption and end malpractices. This is especially crucial in a post Covid-19 scenario where auto drivers are bearing the brunt of heavy loans and inability to repay them. I am hopeful that this measure, along with strict enforcement by the department will bring down such malpractices and bring relief to a lot of auto drivers,” said Gahlot.

These provisions made under Section-51 of Motor Vehicle Act 1988 and Rule-61 of the Central Motor Vehicle Rules 1989, clearly lay down rules regarding the vehicles repossessed by the Financiers (NBFCs / Banks) from the Registered Owner on account of default in payment of loan towards the vehicles under hypothecation. In such cases, the said vehicle shall be transferred in the name of the Financiers (NBFCs / Banks) on production of relevant orders of the Court / Arbitrator.

“This reiterates the provision that a direct transfer of the vehicle and permit to another buyer is not legally permissible. The department has further clarified that the loan arrangement is only in respect of the vehicle and not the permit/letter of intent issued to the original owner. In case the registered owner is unable to produce any evidence to the contrary, the Registration Certificate (RC) of the original registered owner will be cancelled on default of loan and a fresh Registration Certificate (RC) shall be issued in the name of Financiers (NBFCs / Banks),” the state transport department later said in a statement.

The permits issued against such vehicles shall be deemed to be surrendered to the transport department and such repossessed vehicles can be sold by the financier to the auction purchaser following due process and legalities. Even in such cases, the permit will not be transferred or deemed to be transferred in favour of the auction purchaser.

The purchaser, who must be a resident of Delhi having an Aadhaar Card of Delhi address, possessing a valid LMV driving licence and a PSV badge, can then approach the department to get the vehicle transferred in his/ her name.

Gahlot said the department is in the process of preparing guidelines to ensure that other transport/ non- transport vehicles also comply with the same. The department will also share the list of such surrendered permits and registration of vehicles in the name of Financiers with the Enforcement Branch to check for any unauthorised playing.