Planning to sell your car? Here's what you should be worried about after Delhi blast

The recent explosion near the Red Fort has drawn attention to a risky yet widespread oversight — the failure to transfer vehicle ownership after a sale, a lapse that can cause serious trouble if the car ends up in the wrong hands.

Officials warn that not updating a vehicle’s registration certificate (RC) can saddle the new owner with the previous owner’s liabilities, including loans and fines. Worse, a car with unclear ownership can easily be misused for criminal activities, leaving the registered owner exposed to police action, vehicle seizure, and the legal hassle of proving rightful ownership.

During the current probe, several former registered owners of the Hyundai i20 found themselves detained and questioned. "The fact that the vehicle had changed hands multiple times, with its final handler linked to a sensitive region and potential terror motives, suggests the deliberate complication of the paper trail — a tactic designed to confuse investigators and buy time for the perpetrators," said an officer.


According to transport officials, the law deems the original seller the legal owner until the vehicle’s registration certificate (RC) is formally updated in the Regional Transport Office (RTO) records. This means the seller could face serious repercussions if the vehicle—or its new owner—is involved in any unlawful activity.

A retired RTO officer told TOI that selling a car isn’t merely a financial exchange but a legal transfer that requires due diligence and proper documentation.

"The law mandates that the seller must inform the respective RTO about the sale within 14 days by submitting Form 29. This crucial step officially records that the vehicle is no longer in your possession. Get a stamped, officially acknowledged copy," reported TOI quoting the retired RTO officer.
One should also insist on immediate transfer and signing of Form 30, suggested cops. "Do not simply hand over blank, signed forms. Follow up relentlessly with the buyer and the RTO until the new RC reflecting the buyer's name is issued," said a senior cop.

Exercising extreme caution about who you are selling your vehicle to is also important. Criminal elements often seek cars with untraceable or multiple owners to execute nefarious plans, said cops.

According to a senior traffic police officer, if the transfer process is delayed, filing a police complaint is a good idea. "If the buyer becomes unresponsive or unreasonably delays the process, immediately file a formal written complaint at your local police station, providing details of the sale. This creates an official record of the buyer's refusal and your due diligence, which can serve as critical evidence in your defence," he said.

Several used car sellers TOI spoke to claimed they usually do their due diligence, but it is often the customer who defaults. Lokesh Munjal, president, All India Car Dealers Association, said there are instances where buyers make excuses after purchasing vehicles. "Some buyers from other states claim they will transfer ownership in the name of a relative living in Delhi, but they never complete the process," he said. In many cases, he added, such buyers say later they no longer like the vehicle and intend to resell it.

Rohit, another used car dealer, said whenever such a vehicle is sold, all KYC documents, including the buyer's Aadhaar, are collected. "The ownership transfer process is completed online, and only after that is the car sold," he added.

(with TOI inputs)