Transport Department Warns Unauthorised Second-Hand Automobile Dealers, Requires Strict Compliance

Sri Vijaya Puram | January 31, 2026

The Transport Department has cautioned that a number of second-hand automobile sellers are working with out acquiring the obligatory Dealer Authorization Certificate (DAUC), leading to improper switch of possession and pendency of car information within the VAHAN database.

In an advisory issued on this matter, the Department knowledgeable all people and institutions engaged within the sale and buy of used motor automobiles that carrying on such enterprise and not using a legitimate DAUC is a violation of the Central Motor Vehicles Rules, 1989. As per Rules 55A to 55E of the stated Rules, no individual or agency is permitted to have interaction within the enterprise of shopping for, promoting, stocking, or facilitating the switch of possession of second-hand motor automobiles with out authorization granted by the involved Registering Authority.

The Department said that Rules 55A to 55E clearly lay down the process, eligibility standards, duties, and validity circumstances for the authorization of second-hand motorcar sellers. These provisions additionally mandate the right upkeep of information, on-line switch of possession, and strict compliance with VAHAN-related processes to make sure transparency and accuracy in automobile registration information.

Warning of strict motion, the Transport Department stated that enforcement businesses will provoke stringent measures in opposition to people or institutions discovered buying or promoting used automobiles and not using a legitimate Dealer Authorization Certificate.

The basic public has been suggested to train warning and make sure that all transactions involving second-hand automobiles are carried out solely by licensed sellers holding a legitimate DAUC. This, the Department emphasised, will assist patrons and sellers safeguard themselves in opposition to future authorized issues and monetary liabilities arising from improper or incomplete switch of car possession.