Government reportedly proposes amendments to the Motor Vehicles Act; Vehicle owners in India could be allowed to keep their vehicles in another state for up to 3 years on existing registration

Currently, the Motor Vehicles Act in India mandates that if a vehicle registered in one state remains in another for more than a year, it has to be re-registered in the new state. This rule was a kind of problematic for people who have transferable jobs or who have shifted to another state for a particular time period due to work, study or personal reasons.

Reportedly, the Ministry of Road Transport & Highways has proposed amendments to the Motor Vehicles Act as per which owners can keep their vehicles in other states for up to 3 years on the existing registration. It is said that the proposal was presented to an informal Group of Ministers last week.

The Times of India report mentioned an official’s statement which states, “The proposal aims at helping people who plan to come back to their home state after 2-3 years of completing an assignment. Re-registration of a vehicle in a new state and revoking it after returning tothe  home state is a hassle for people.”

If this proposal gets approval, then it will complement the Bharat (BH) series registration, which allows eligible car owners to drive across all states and UTs without re-registration.

Though, as per transport officials, the larger issue lies in the wide disparity in road taxes across states, and the solution lies in harmonising road taxes across states, supported by a seamless transfer process.

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