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CAR INSURANCE

RTO Rules for Interstate Vehicle Transfer. Significance of RTO

Karan Sharma Karan Sharma 05 March 2020

Are you relocating to a new state with your car? Read this article to know the rules for interstate vehicle transfer.

RTO Rules

Many people are unaware of the fact that an individual has to re-register their vehicle if they are shifting to a new state. It is absolutely necessary to do the same as the Regional Transport Office will be able to identify the vehicle number and the owner. A license plate is issued by the Regional Transport Office at the district level.

If an individual is moving their personal vehicle to a new state for more than 1 year, he/she will be required to re-register the vehicle in the new state. The owner will be required to pay the road tax again. The road tax already paid in the previous state of stay can be claimed for reimbursed from the previous state by submitting the new road tax receipt. Post submission, the owner along with their vehicle, will follow the re-registration regulations of the new state.

Here is the procedure for re-registration:

No Objection Certificate

The first step is to obtain a no objection certificate from the regional transport office. The process involves the following:

  1. NOC from the traffic department - This indicates that there are no fines pending on the owner.
  2. Official report from the National Crime Records Bureau (NCRB) - This statement clarifies that the car was not involved in any accident or stolen.

Documents required for NOC and NCRB

The following documents are required for NOC and NCRB

  1. Driving license
  2. A letter addressed to the Deputy Commissioner of Traffic
  3. Registration Certificate
  4. Insurance papers
  5. Pollution Under Control (PUC) certificate
  6. Address proof of the car owner
  7. Clearance letter from the financing bank, if the car is under a loan

RTO

Once you have obtained the NOC and report from NCRB, you are required to visit the RTO with the following documents and submit the same.

  1. Form 28 - This is the Application for No Objection Certificate and Grant of Certificate
  2. Registration Certificate
  3. Documents that indicate the payment of the road tax
  4. Insurance Documents
  5. PUC Certificate
  6. NOC from the traffic police
  7. Clearance from NCRB
  8. NOC from the financing bank if the car is under some form of collateral

Post submission of the following documents, it will take a few days to receive an NOC from the RTO.

Re-Registration and Interstate Transfer

After receiving the NOC from the RTO, the vehicle owner is required to re-register the vehicle with the following documents:

  1. Registration certificate from the previous state
  2. Form 20 - Application form for the registration of the vehicle
  3. NOC that the car owner has received from the previous RTO
  4. Form 27 - Application form for assigning new registration certificate to a vehicle (If the car is under hypothecation, a duplicate copy of this will be returned to the financing bank after the re-registration process)
  5. Form 33 - Change of address
  6. Copy of the address proof
  7. Copy of the driving license
  8. Attested copy of the PUC Certificate
  9. PAN Card or Form 60 or Form 61, as relevant
  10. Passport sized photos of the applicant
  11. Lending bank NOC if the vehicle is under a loan

After all the above documents are submitted, the new registration number will be issued in a few weeks.

Payment of Road Tax

Post re-registration, the vehicle owner is required to pay road tax again in the new state he/she has moved to. Only after this payment, the previously paid road tax will be reimbursed. The documents required for this process are:

  1. Proof of ID
  2. Proof of Address
  3. New Registration Certificate
  4. Old Registration Certificate
  5. Insurance Policy with new registration number
  6. Application for Road Tax Refund
  7. Updated and signed Form 16

Post submission of the above documents, the RTO in the new state will contact the previous RTO for registration number authentication. The old RTO will issue a CRTI. Post the CRTI issuance, the refund will be processed within 6 months.

Cancellation

In case you are unable to move to a new state within the designated time, you can apply for cancellation of the NOC you have received from the original RTO. You will have to approach the RTO and request for the procedure to cancel the NOC. The RTO will issue a Non Utilisation Certificate (NUC) of NOC.

Significance of RTO

The Regional Transport Organization is an important government agency which is responsible for maintaining a database of vehicles across the state. The RTO issues driving licenses and collects road tax. RTO has been established under section 213(1) of the Motor Vehicles Act, 1988 and is applicable throughout the country.

Why is RTO Important?

RTO is important because of the following reasons:

  1. RTO enforces the various Acts of Motor Vehicles on a state and central level as laid down by the government of India.
  2. Ensures development of road transport through management of permit
  3. Collects road tax
  4. Facilitates registration of vehicles
  5. Issue of licenses for public transit and freight traffic
  6. Conduct driving test and issue Learner's and Permanent driver's license
  7. Renewal of License
  8. Maintain a database of all registered vehicles
  9. Interstate Vehicle Transfer and Re-Registration
  10. Issues international driving license permit
  11. Mechanical inspection of accidental vehicles
  12. Issues badges to public service vehicles, taxis and auto rickshaws
  13. Transfer of vehicle ownership

In short, it is advisable that the application for re-registration of the car should be submitted within 30 days from the date of expiry of 12 month or else the car owner will have to bear a penalty on road tax.

Karan Sharma
Written by Karan Sharma
Content Specialist and Strategist, foolishly creative and always ready for a game of 'Call of Duty'.