(1) Where the ownership of any motor vehicle registered under this Chapter is transferred,—
(a) the transferor shall,—
(i) in the case of a vehicle registered within the same State, within fourteen days of the transfer, report the fact of transfer, in such form with such documents and in such manner, as may be prescribed by the Central Government to the registering authority within whose jurisdiction the transfer is to be effected and shall simultaneously send a copy of the said report to the transferee; and
(ii) in the case of a vehicle registered outside the State, within forty-five days of the transfer, forward to the registering authority referred to in sub-clause (i)—
(A) the no objection certificate obtained under section 48; or
(B) in a case where no such certificate has been obtained,—
(I) the receipt obtained under sub-section (2) of section 48; or
(II) the postal acknowledgement received by the transferred if he has sent an application in this behalf by registered post acknowledgement due to the registering authority referred to in section 48, together with a declaration that he has not received any communication from such authority refusing to grant such certificate or requiring him to comply with any direction subject to which such certificate may be granted;
(b) the transferee shall, within thirty days of the transfer, report the transfer to the registering authority within whose jurisdiction he has the residence or place of business where the vehicle is normally kept, as the case may be, and shall forward the certificate of registration to that registering authority together with the prescribed fee and a copy of the report received by him from the transferor in order that particulars of the transfer of ownership may be entered in the certificate of registration.
(2) Where—
(a) the person in whose name a motor vehicle stands registered dies, or
(b) a motor vehicle has been purchased or acquired at a public auction conducted by, or on behalf of, Government,
the person succeeding to the possession of the vehicle or, as the case may be, who has purchased or acquired the motor vehicle, shall make an application for the purpose of transferring the ownership of the vehicle in his name, to the registering authority in whose jurisdiction he has the residence or place of business where the vehicle is normally kept, as the case may be, in such manner, accompanied with such fee, and within such period as may be prescribed by the Central Government.
(3) If the transferor or the transferee fails to report to the registering authority the fact of transfer within the period specified in clause (a) or clause (b) of sub-section (1), as the case may be, or if the person who is required to make an application under sub-section (2) (hereafter in this section referred to as the other person) fails to make such application within the period prescribed, the registering authority may, having regard to the circumstances of the case, require the transferor or the transferee, or the other person, as the case may be, to pay, in lieu of any action that may be taken against him under section 177 such amount not exceeding one hundred rupees as may be prescribed under sub-section (5):
Provided that action under section 177 shall be taken against the transferor or the transferee or the other person, as the case may be, where he fails to pay the said amount.
(4) Where a person has paid the amount under sub-section (3), no action shall be taken against him under section 177.
(5) For the purposes of sub-section (3), a State Government may prescribe different amounts having regard to the period of delay on the part of the transferor or the transferee in reporting the fact of transfer of ownership of the motor vehicle or of the other person in making the application under sub-section (2).
(6) On receipt of a report under sub-section (1), or an application under sub-section (2), the registering authority may cause the transfer of ownership to be entered in the certificate of registration.
(7) A registering authority making any such entry shall communicate the transfer of ownership to the transferor and to the original registering authority, if it is not the original registering authority.
Simplified Explanation
Section 50 provides the legal framework for transferring the ownership of a motor vehicle. Whenever a vehicle is sold, gifted, or otherwise transferred to a new owner, the original owner and the new owner must notify the RTO and complete the necessary formalities to officially update the Registration Certificate (RC) with the new owner’s details.
Key Points
- Notification of Transfer:
- Both the transferor (seller) and transferee (buyer) are required to notify the RTO about the transfer of ownership.
- The notification should be submitted to the RTO where the vehicle is currently registered.
- Time Limit for Notification:
- If the transfer is due to a sale within the same state, the seller must notify the RTO within 14 days from the date of transfer, and the buyer must notify the RTO within 30 days.
- If the transfer is between two different states, the seller must notify the RTO within 45 days, and the buyer must complete the formalities within the same time frame.
- Documents Required for Transfer:
- The following documents must typically be submitted to the RTO:
- Form 29: This form is used by the seller to notify the RTO about the transfer of ownership.
- Form 30: This form is submitted by the buyer to inform the RTO of the change in ownership and to request updating the RC.
- Original Registration Certificate (RC).
- No Objection Certificate (NOC) if the vehicle is being transferred to a different state (under Section 48).
- Proof of insurance.
- Pollution Under Control (PUC) certificate.
- Identity and address proof of the buyer.
- Copy of the sale agreement or proof of transfer.
- The following documents must typically be submitted to the RTO:
- Transfer on Death of Owner:
- If the original owner of the vehicle passes away, the legal heir must notify the RTO about the transfer of ownership within 3 months from the date of death.
- In such cases, additional documents such as the death certificate of the owner and proof of heirship (such as a will or legal document) must be submitted to the RTO.
- Transfer of Ownership in Public Auction:
- If a vehicle is sold at a public auction (e.g., government or bank auctions), the person who purchases the vehicle must inform the RTO of the transfer within 30 days. The auctioning authority is also required to notify the RTO about the transfer.
- Procedure for Transfer Between States:
- If the vehicle is being transferred to a new owner in a different state, a No Objection Certificate (NOC) must first be obtained from the RTO where the vehicle is registered. Once the NOC is issued, the buyer can apply for re-registration in the new state.
- After the NOC is obtained and the transfer process is completed, the vehicle will receive a new registration number in the buyer’s state.
- Updating the Registration Certificate (RC):
- Once the RTO processes the transfer application, the Registration Certificate (RC) will be updated with the details of the new owner.
- The buyer will receive an updated RC, which officially registers them as the legal owner of the vehicle.
- Penalties for Non-Compliance:
- Failure to notify the RTO of the transfer of ownership within the prescribed time limits may result in penalties or fines.
- In some cases, the vehicle could be impounded or restricted from being used on public roads until the ownership details are updated.
Example Scenario
If a person in Delhi sells their car to someone in Mumbai, both parties must complete the transfer process. The seller needs to submit Form 29 to the Delhi RTO within 14 days, and the buyer must notify the Mumbai RTO with Form 30 within 30 days, along with a No Objection Certificate (NOC) from Delhi. The Mumbai RTO will then issue a new Registration Certificate in the buyer’s name.
Importance
This section ensures that the transfer of vehicle ownership is officially recorded, making sure the new owner is legally responsible for the vehicle. It helps prevent disputes, ensures proper tax collection, and enables the authorities to maintain accurate records of vehicle ownership.
Conclusion
Section 50 of the Motor Vehicles Act governs the process of transferring vehicle ownership. Whether the vehicle is sold within the same state or to a different state, the RTO must be notified, and the Registration Certificate (RC) must be updated with the new owner’s information. This ensures that ownership is legally transferred, and the new owner is responsible for the vehicle.
