Companies & Sectors
New Motor Vehicles Act: There’s nothing for road users, only wheeler-dealers will gain

There is much that needs to be done to make the new Motor Vehicles Act more fully representative to meet the aims and aspirations of larger segments of road users, than just catering to the various lobbies that seem to have sprung up and influenced the ‘suggestions’ put forward by ‘expert’ committees

There is a very interesting document up on the Internet, which pertains to all of us who are in any way out on the roads, in any form whatsoever. The term “road user”, misused for quite some time thanks to a Motor Vehicles Act as well as governance which both together appeared to provide higher rights to owners and operators of private cars and bikes, has been up for serious change for quite some time now, with a new Motor Vehicles Act—aimed at being up to date, and in keeping with certain new realities.
And this is what it is in its current form:
Briefly, this is the report of the Expert Committee on review of the Motor Vehicles Act, submitted in January 2011, and this is being debated, contested, whittled down—and in all probability, realigned to fit in with the various interest groups. If you look closely, you will find that the interests of the manufacturers, the road-building lobby and the perpetuation of the “authority” influenced roadside hafta regime—have all been looked after.
Except those of the true road users in India—you and me, trying our level-best to reduce our cost of living as well as seeking a cleaner environment with minimal fuss and stress. And of course, decent mobility—in reasonable safety, comfort and maybe some privacy. We are still prime targets number one, in everybody’s sights. And we don’t have a lobby.

While the “expert committee” report itself runs into 402 pages, and in its wisdom is aligned in such a way that some pages are in ‘landscape’ mode while others are in ‘portrait’ mode, making online reading an even more onerous task, there are, and were, some specific parts which were supposed to relate to the whole concept of making public transport better and easier for the majority of road users in the country—people who travel by cycles, rickshaws, buses or taxis or other forms of public transport. These recommendations, apart from having a salutary effect on environmental issues by way of lesser emissions as well as reducing road congestion, are also aimed at having an even more important side-effect—a reduction on the load on your wallet by way of making it easier and cheaper for you and me to use public transport instead of private.
However, many of the pro-public transport steps which were going to benefit a large number of road users appear to have simply been diluted or removed altogether, in these recommendations. As with all matters which appear to have a public interest, but end up working against the interests of specific lobbying groups, there is no explanation on why certain proposals were removed. Truth is to be found, increasingly, in what is not published lately.
For example:
1)     While the definition of "stage carriages" has been suitably amended to bring it into line with other definitions, the proposal that licensed and authorised stage carriages were to be exempted from high rates of tolls and entry taxes in the larger social good has been done away with. For those of us who have spent hours at toll booths and local tax barriers while the bus driver and conductors do their paperwork and pay money which eventually reflects in higher fares, the sight of private cars whizzing past without a worry in the world, is what motivates people away from public transport.
2)     Public passenger transport which needs to operate across local borders—municipalities, towns, cities, districts and states—are still being subjected to a complicated system of permits and permissions. Most of which end up requiring influence of the political sort, let it be said openly, as it is a public secret. The cost of these inefficiencies, which could have been reduced if it was set for simply open competition of the transparent-bidding sort, as per a proposal, only adds to costs of travel for the segment of road users—the poor and the middle class—who need it the most. Again, absent.
3)    A "National Register" for driving licences issued anywhere in India, as per a proposal, would have removed the onerous tasks of getting fresh driving licences even for people operating private vehicles. All you would need to do if you moved within the country would be to update address details. However, what appears here is that the "unique driving licence number" on a national basis shall now be introduced, but any time you, the road-user, shift your residence, you will need to get a fresh driving licence with updated address details.
4)    Likewise, a "National Register" for automobiles, which already exists by way of a unique VIN number that is on every motor vehicle manufactured, would have gone a long way in making life easier for people buying and selling motor vehicles. For one, a complete history would be available, from pre-manufacture state onwards. For another, a change in ownership, address, registration number or any other change would follow this nationally valid number throughout. Again, it seems to have been done away with, and whispers say that this was at the behest of the influential stolen vehicle lobby, and that was the end of "number portability".
5)    A proposal requiring standardisation of hand and stalk controls to comply with right-hand drive requirements, setting specifications for safety appliances like airbags and seatbelts, and other design-specific aspects have simply been removed. Again. The one on standardising hand controls is specially important—some manufacturers, especially those of European origin, continue to provide left-hand drive controls on cars sold in India, which in any way you look at it, is unsafe. In a typical RHD vehicle, the indicator stalk is on the right side, and the wiper on the left.
6)    There appears to be almost close to nothing in the proposed Motor Vehicles Act when it comes to the rights and responsibilities of cyclists, pedestrians, animal-drawn vehicles, cycle-rickshaws and other categories of road users. Who, whether defined or not, do make for a huge segment of road users—probably the largest. This is supposed to be India’s Motor Vehicles Act, and part of the brief is to cover the interests of all road users—so maybe the Act itself needs to be re-named? After all, a large number of renewable energy vehicles in the near future are simply not going to fit into the present definition of "motor vehicle" too.

There is much that needs to be done to make the Motor Vehicles Act more fully representative to the aims and aspirations of larger segments of road users than just catering to the various lobbies that seem to have sprung up and influenced the "suggestions" put forward by the "expert committees". It is time more of us who are road users in various categories stood up and put our views across. Or sit back, and see the roads being taken over by private transport, stuck in our traffic jams.




6 years ago

The woes of the owner who sells the vehicle.

It is a very happy occasion when we buy a vehicle. But at the time of selling the vehicle everyone is worried. It is not because of selling the old vehicle but because of the change of ownership problems.

Unless the buyer changes the ownership, the vehicle will continue to be in the name of the seller/ original owner. There are umpteen numbers of cases happening that the innocent seller put to untold hardships due to the above. As you have read in the newspaper, some of the terrorists who acted against our country used the vehicle they bought from others. They did not change the ownership of the vehicle. The seller knew it only when the policemen knocked their door.

One of my neighbors had to pay 1.5 lakhs as compensation when the vehicle sold by him met with an accident. At the time of the accident the vehicle had no insurance coverage. The police registered case against the owner of the vehicle (my neighbor) and he had to spend many years in court room fight the case.

Some provisions must be added or the law may be amended in order to protect the original owner who sells the vehicle.



In Reply to Govindan 6 years ago

Thank you for writing in. A procedure under the MVA - CMVR exists, using Form 29, wherein the 'transferor' submits under receipt the notice of sale to the RTO where the vehicle was registered. It is also helpful to take payment by cheque. It is also important to inform the insurance company that the vehicle has been sold and take a refund of the unused part of the insurance OR transfer the benefit of NCB insurance to another vehicle.

Hope this helps.

Humbly submitted/vm


In Reply to MalQ 6 years ago

Thank you for your reply. Could you please enlighten me on the following:

1. Even if there is an agreement between the seller and the buyer or the seller takes the payment by cheque the responsibility is on the RC owner, unless the ownership is transferred. Am I right?

2. If the vehicle is old and having only third party coverage, should the policy holder report the sale of vehicle to the Insurance Company? (If the Insurance company declines to renew the policy in the original policy holder’s name as per request and the crooked person who bought the vehicle still uses the vehicle without an insurance policy, it is the original owner who will be in trouble if an accident happens. Am I right?)

3. I would like to know whether submission of form 29 will absolve the original owner of any future legal liability.

Corporate Accounts: Accounting substandard

Companies are able to hide more than they reveal and auditors are strangely comfortable with that

There is an organisation called the Institute of Chartered Accountants of India (ICAI). It is supposed to set standards for fair accounting and transparency in communication of financial information to anyone who reads an audited annual report. It is also obliged to make written comments on any...

Premium Content
Monthly Digital Access


Already A Subscriber?
Yearly Digital+Print Access


Moneylife Magazine Subscriber or MAS member?

Yearly Subscriber Login

Enter the mail id that you want to use & click on Go. We will send you a link to your email for verficiation
Dim Diwali for realty: Soaring inflation, high inventories and high interest rates

The National Housing Bank has instructed Housing Finance Corporations to charge the same rate on loans for both old and new customers, a blow for the customer and the industry. Debt-plagued builders, inflation and high interest rates are also not helping the sector

The realtors really need a bright Diwali this time, but it looks like things are not going to be so easy. It is a difficult time, with soaring inflation, uncertain markets and high interest rates—with talks of another rate hike starting to circulate.

No wonder, the outlook is not that optimistic. Unlike other years, this Diwali is seeing hardly any new offers. A Thane-based broker told Moneylife, “We are not offering much discounts; and a lot of the stock is left over. We are not expecting sales like we saw earlier.”

On top of that, the National Housing Bank has instructed Housing Finance Corporations to charge the same rate on loans for both old and new customers. The blow has been softened by a waiver of prepayment charges, but experts believe that sales will be impacted negatively. An IDFC Securities report says, “With the price of a new home loan going up, the growth in new home sales and mortgage portfolios would be impacted negatively in the current high interest rate scenario.”

Buyers too, seem to be unsure about their purchases, because they are hoping for price cuts instead of other offers. Builders, however, are in no mood to slash prices, citing several reasons. “Most builders have run up huge debts, and so are holding back in the hope of realising their investments and recovering high construction costs,” said an analyst preferring anonymity.

Mr Anuj Puri, chairman and country head of Jones Lang LaSalle India told Moneylife, “The festive season looks a bit subdued for property buyers this year. The price corrections that were anticipated in the primary cities have not materialised, at least not in the hoped-for magnitude.”

Delayed approvals, too, seem to have added to the woes. Mumbai’s civic body BMC (Brihanmumbai Municipal Corporation) seems to have held back a lot of approvals, as the restructuring of floor space index (FSI) norms is yet to be finalised. As a result, there have been very few launches this season; as was seen in the MCHI exhibition. In fact, some developers say that prices may go up after Diwali, and in the exhibition, some builders had raised the price up to 15%, while offering discounts on spot payments.

The real-estate sector is yet to pick up pace after the disastrous ‘Shraadh’ season—an inauspicious time. According to a Prabhudas Lilladher report, sales registrations for the month of September are down 10% month-on-month and 22% year-on-year, to 4,137—which is a 29-month low. The report adds, “The response to the festive season would only be visible in the December 2011 registration numbers as registrations happen with a two-month lag.”


We are listening!

Solve the equation and enter in the Captcha field.

To continue

Sign Up or Sign In


To continue

Sign Up or Sign In



The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Online Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine)