NEW DELHI: In order to curb the black marketing of autos by financiers to end harassment of auto drivers, the Delhi government on Tuesday issued an order to prevent the direct transfer of permits and vehicles to a new buyer in case of default of loans.
This was done in light of various representations related to the procedure being followed for the transfer of auto-rickshaws after repossession by financiers like Banks and Non-Banking Financial Companies in the eventuality of loan defaults.
These provisions made under Section-51 of the 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 the 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.
No direct transfer of permit, vehicle to new buyer
In order to curb black marketing of autos by financiers, the Delhi Government on Tuesday issued an order to prevent the direct transfer of permits and vehicles to a new buyer in case of default of loans