Simplified legal mechanism for inter-state movement of personal vehicle

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The Problem

In a dynamic fast growing India it is becoming more and more important for citizens to move from one state to another frequently. But people go through unreasonable hardships for moving his own vehicle for which he has already paid his taxes, from one part to another part of his own country.

As per the Motor Vehicle's Act 1939 which most states refer to in such cases, "When a motor vehicle registered in one province has been kept in another province for a period exceeding twelve months, the owner of vehicle shall apply to registering authority, within whose jurisdiction the vehicle then is, for assignment of a new registration mark and shall present the certificate of registration to that registering authority".

There are two common scenarios where the above clause is either disregarded or difficult to follow: 

 First one is when a person relocates from one state to another for more than a period of 12 months but will come back to home state within next 2 or 3 years.

  • Vehicle is supposed to be re-registered in such cases, in the new state. Most citizens wouldn't mind doing this, had the process been less cumbersome.  The process mentioned in the link below is too much considering the fact the we are still going to be in our own country. In addition rampant corruption and influence of agents at each stage of this process makes it an even more difficult task. Now the situation is worse if the person has to relocate back to the original state shortly after a year. He has to go through all these once again.
  • http://www.servicesutra.com/blog/interstate-vehicle-registration-transfer-india/
  • While re-registering the person has to pay lifetime tax at the new RTO. This amounts to ~10% of vehicle cost and may vary from state to state. For a 10 Lakhs car a tax of around 1 Lac needs to be paid over and above the tax which has already been paid during purchase in home state. 
  • There is provision to refund the tax paid at home state, but this takes months if not years to process, where again the procedure is as cumbersome.
  • In effect no body will have so much money to set aside and not enough time to run behind an archaic system and as a result most people prefer to not re-register and thereby not abide by the law even though they do not wish to do it.
  1. Second Scenario is when somebody travels to other state and returns within a period of 1 year. In such cases, even if we have a PUC done at home state or toll bill taken from original state within one year, the RTO officials/police harass saying rule of this state is different. But nobody knows what the rule is, neither the public nor the officials.

To avoid such troubles I propose the following solution.

 The Solution

  1. Online Re-registration facility with below features
  2.  A unified database of all vehicle registrations across all RTOs in India. It is widely argued that the sovereignty of  state in RTO related matters need to be maintained hence a unified registration mechanism is not the solution but a unified database can be implemented. All previous tax defaults, crimes registered etc against each vehicle can be stored in this database making NOCs and police clearances accessible to public without hassle.  
  3. Central tax adjustment mechanism: Without interfering in the power of individual states in deciding the road tax for their states, a common online platform can be implemented wherein a citizen who has initiated a re-registration procedure, can pay only the difference in taxes of the original and current registering authority. The remaining amount should be settled between the respective states automatically.
  4. Temporary inter-state permit generated online: For moving the vehicle for a short period less than a year, a temporary permit can be generated online for a specified period thereby avoiding misuse of power by Police and RTO officials.

 

I do not own a vehicle, nor have I faced any issues related to inter-state registrations. The reason I am forwarding this petition is because I have seen the trouble that many of my colleagues and friends face and I understand this is a genuine issue and a gross violation of "Right to Freedom" 



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