Why incomplete paperwork after car sale may land cops at your doorstep

New Delhi: The recent explosion near Red Fort has put the spotlight on a common yet dangerously overlooked practice — the failure to complete the transfer of vehicle ownership after a sale that can lead to trouble at a later stage, in case the car falls into the wrong hands.Failure to properly transfer a vehicle's registration certificate (RC) burdens the buyer with all previous liabilities, such as loans and fines. Moreover, murky history makes the vehicle an ideal tool for crime, leaving the current owner vulnerable to seizure, detention and the difficult legal task of proving legitimate ownership, according to officials.

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, as per law, until the RC is officially transferred in the Regional Transport Office (RTO) records, the original seller remains the legal owner.

This exposes the seller to grave consequences if the vehicle or the new owner is caught on the wrong side of the law.A retired RTO officer said the sale of a car is not just a financial transaction, but a legal handover that demands diligence. "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," he advised.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.