Sri Vijaya Puram | January 31, 2026
The Transport Department has cautioned that several second-hand vehicle sellers are operating without obtaining the mandatory Dealer Authorization Certificate (DAUC), resulting in improper transfer of ownership and pendency of vehicle records in the VAHAN database.
In an advisory issued on this matter, the Department informed all individuals and establishments engaged in the sale and purchase of used motor vehicles that carrying on such business without a valid DAUC is a violation of the Central Motor Vehicles Rules, 1989. As per Rules 55A to 55E of the said Rules, no person or firm is permitted to engage in the business of buying, selling, stocking, or facilitating the transfer of ownership of second-hand motor vehicles without authorization granted by the concerned Registering Authority.
The Department stated that Rules 55A to 55E clearly lay down the procedure, eligibility criteria, responsibilities, and validity conditions for the authorization of second-hand motor vehicle dealers. These provisions also mandate the proper maintenance of records, online transfer of ownership, and strict compliance with VAHAN-related processes to ensure transparency and accuracy in vehicle registration data.
Warning of strict action, the Transport Department said that enforcement agencies will initiate stringent measures against individuals or establishments found purchasing or selling used vehicles without a valid Dealer Authorization Certificate.
The general public has been advised to exercise caution and ensure that all transactions involving second-hand vehicles are carried out only through authorized dealers holding a valid DAUC. This, the Department emphasized, will help buyers and sellers safeguard themselves against future legal complications and financial liabilities arising from improper or incomplete transfer of vehicle ownership.
