Most Indians don't know this vehicle ownership rule

Most Indians don't know this vehicle ownership rule - Expert Guide (2025)

Introduction - What is this "secret" rule?

Often people in India buy / sell a car, do not transfer, or after changing the state think "will continue to run. But as per Section 47 of the Motor Vehicles Act:

If a vehicle is kept / driven from one state to another for more than 12 months, the owner is required to transfer the registration of the vehicle to the new state.

These rules are not known to many people - even experienced owners - and non-compliance can lead to legal consequences, including fines, fines, and even confiscation.

1.What exactly is this rule?

Section 47 of the Motor Vehicles Act:

When a motor vehicle registered in one state is kept in another state for more than 12 months, the owner will have to apply for a new registration mark in that state. "

Meaning:

Do you register in Delhi for a vehicle from Maharashtra, Karnataka, Bihar or do you use / keep it continuously for 12 months in any state? So it is a legal requirement to transfer the RC (re-registration) of the vehicle to the new state.

If you do not transfer...

The law can be applied - There could be challans, seizures, fines - and RTO action.

2. Why most Indians don't know this rule

Is it under the rule to enforce and public awareness is very low because:

1) Common sense sounds like iron:

"Gaadi toh chalta hi rahega" - so majority of people assume that a vehicle registered in one state can ply without transfer in every state.

2) RTO enforcement is unequal:

In mossy states the main strict enforcement happens, and not in mossy states. Why do people get confused and ignore the rules?

3) Online processes and awareness is low:

Ownership transfer and registration procedures are already available online on the transport platform, but users do not understand the urgent need for this.

3. What happens if you don't transfer?

If you do not re-register the vehicle in a new state for more than 12 months:

Traffic police can impose challan, vehicle can be seized, insurance claim can be the main problem, road tax questions can come. Liability may arise in the new state 。 Legal notices are received

Basically the defaulting owner is at risk of legal consequences.

4. Step-by-step guide to transfer vehicle registration

If you are a permanent / long-term resident of a state, follow these steps:

Step 1: Obtain NOC from previous RTO

NOC - No Objection Certificate - First take it from the RTO of the state. The re-registration process will be incomplete without an NOC.

Step 2: Collect documents

Original R.S. No Objection Certificate Insurance Certificate PUC Certificate Address Proof (New State) Some forms like Form 20, Form 27 etc.

Step 3: Submit to New State RTO

Submit all the documents to the RTO of the new state and pay the applicable road tax. The amount of road tax varies from state to state.

Step 4: Verification

Vehicle inspection / verification is carried out. A new certificate of registration will be issued.

Timeline

Most must be completed within 12 months. The validity of the NOC is automatically six months, but the deadline for registration is 12 months.

5. Migration from State A to State B

Imagine:

You shift from Bihar to Hyderabad, you take your bike registered in Delhi

The government is now hoping to:

Submit NOC from Bihar RTO Re-register at Telangana RTO within 12 months Pay applicable road tax and transfer charges

If not so much - you're technically violating the law - and enforcement can happen at any time.

6. Why does this rule exist?

If the vehicles remain registered in the old state, the states lose revenue

Every state collects road tax. If the owners are not re-registered, the state loses revenue.

Safety and Responsibility

RC is a local address proof. Accountability is created for police, insurance and enforcement officers.

Transport and data accuracy

The data of vehicles in the Transport RTO database remains updated which is important for the National Mobility Plan.

7. BH series - national registration solution.

The government has introduced BH series number plates, which have this pen point door:

BH Registration - There will be no need for nationwide transfer / re-registration if you have a BH series number. This rule reduces these inter-state transfer headaches.

Meaning: You can take a centrally transferable RC number which will continue to be valid in every state of India.

8. Additional General Vehicle Ownership Rules

It is mandatory to notify 30 days after the change of address.

Third-party insurance is required; It is illegal to drive without insurance.

Second- The responsibilities of the buyer / seller after selling the hand vehicle are - Fill Form 29 and 30 within the time limit.

9. Conclusion -

If you have been living in a new state for 12 months, re-register your RC if you drive on the roads there for daily commute.