Why I failed to transfer my car from Pune to Hyderabad

I need quick suggestions with transferring my vehicle to new state and I will also list down issues and traumatic experiences I had and failed in changing the registration.

BHPian techrider recently shared this with other enthusiasts:

Quick message to moderator: I'm a new Team BHP member and I'm not able to create a new thread because of my membership limitation. I would like to share my thoughts on the below Issue and start a discussion on the issues with Vehicle re-registration and BH series registration. Please let me know if this post makes sense as a new thread for wider audience and the process to do the same

Hi BHPians,

I'm an auto enthusiast and I'm in the process of shifting from Pune to Hyderabad. Looking at the above thread, I need quick suggestions with transferring my vehicle to new state and I will also list down issues and traumatic experiences I had and failed in changing the registration:

Process described by Motor Vehicle ACT:

1. Obtain NoC from Financer, if hypothecated (according to Motor Vehicle act it is not mandatory, but I have heard that RTO officials don't provide NoC if the financier has denied/not provided any reply within 7 days [Pls refer to sub-section (8) of section 51 of Motor Vehicle act])

2. Submit NoC obtained from financier and a NoC from local police commissioner/SP office depending on the jurisdiction of the RTO along with Form 28/27a (depends on your requirement whether you want to re-register to new state/ BH series) in you registered RTO

3. If you are using form 27a for BH series porting, you don't have any next steps. Else, if you are using Form 28, you have to submit Form 27 in your destination RTO along with pencil sketching's of chassis number and NoC that your previously registered RTO will provide after submitting Form 28. During this process you will be required to pay road tax, registration fee to complete the process and receive new registration from the destination RTO [The calculation of road tax and registration changes from state to state]

Challenges I have faced in the process and solutions I have discovered:

Challenge: Obtaining NoC from Financers: My bank has uprightly denied in providing the NoC and was very rude when I showed the motor vehicle act (I'm refraining from quoting the bank name, but it is one of the largest nationalized banks in the country)

Solutions:

1. As per Motor Vehicle act NoC from Financier is not mandatory, if financier has denied the NoC you can still apply for NoC and re-register your vehicle given your registered RTO is willing to exercise the rule. However, I'm not sure on the possible legal/illegal repercussions (like harassment, seizure of vehicle etc.) from financier after RTO has processed your application [would love to hear perspectives from general audience and any legal advisors/experts]

2. In case the above solution doesn't work we might have to go through the grievance cell and ombudsman for which I'm not sure on the outcome and the above legal/illegal concerns still apply

3. Close your loan by either paying up the entire money/refinancing from another bank with a huge interest as refinancing comes under financing 2nd hand car category

Challenge: In case we have obtained NoC from financier after facing every possible hurdle and would like to reregister your vehicle in BH series. Registering new vehicles under BH series has not been recognized in states like Telangana and Andhra Pradesh [Not sure on the reasons even after MoRTH has clearly mentioned the regulations and released the GOs], as per MoRTH we can reregister old vehicles under BH series, and this is not yet implemented in states like Maharashtra where BH series registrations for new vehicles is in progress

Solution: I was not able to find any plausible solutions, but I would love to hear your perspective, experiences and possible solutions for the same

Challenge: In case we have obtained NoC from financier after facing every possible hurdle and would like to reregister in a different state. We will encounter issues like long lines and multiple visits, high road taxes and worst/no roads (depending on the state) and finally possible cases of corruption in some RTOs (I have personally seen/done this exercise in 3-4 states for my non-hypothecated vehicle and the possibility of corruption if your documents and vehicle is as per regulations is nil)

Solution: You can find a good and reliable RTO agent who charges decent-exorbitant amount of money to get the work done reliably

Bhpians- I would love to hear your thoughts on the above issues/challenges, points I have mentioned/any mistakes in my post and possibly a working solution. I personally feel the following organizations should involve and make decisions on these pain points:

1. BH series registration should me made mandatory MoRTH and GOI should go ahead with a concept of One Nation One Road Tax to bring the CGST and SGCT that are applied in other consumer-business related transactions.
2. I feel RBI should share strict instructions to banks around the harassment of consumers who are at least paying without defaulting around providing NOCs and it should be mandated that the reason for rejection of NoC should be only potential default of payments along with credible proofs

My approach would be to check the following things as a next step:

1. Try to get NoC from bank using the above solutions and convert to BH/TG as per convenience
2. If I fail in (1) then I will validate if refinancing is even making sense. I have asked couple of banks, and they are quoting anywhere between 13-15% which makes no sense
3. Pay the entire loan and go ahead with the process but I have to spend anywhere between 14-16 lakhs denting my savings for which I feel a buying a new car makes sense with new car loan
2. If the above steps don't work/doesn't make sense, I will have to sell my 1-year-old vehicle to close my loan and buy a new one costing me anywhere between 20-30 lakhs for my needs

Links that I have used for research:

1. Motor Vehicle Act published by GOI: https://ebook.commerciallawpublisher...ile/index.html
2. Team BHP forum for BH series issues in MH: https://www.team-bhp.com/forum/india...h-court-7.html
3. Judgement from Bombay High court on 12/04/2024 : https://www.livelaw.in/pdf_upload/bh...lar-535381.pdf
3. Initial GOI notifications for BH series: https://morth.nic.in/sites/default/f...rk%20Rules.pdf
4. Amendments to initial GOI notification (3): https://static.pib.gov.in/WriteReadD...1216145201.pdf
5. An advisory from GOI on 18/03/2024 to all the states and UTs asking them to continue with BH series registrations as per the notifications shared earlier: https://morth.nic.in/sites/default/f...ementation.pdf

I have also have similar thoughts on taxation laws on automobiles as well, I will try to share my thoughts on that as well. If this conversation is making sense.

Here's what BHPian pedrolourenco had to say in this matter:

Really sick of this out of state vehicles nonsense. Problem is with the MV Act. Why can't the central government make Road Tax uniform all over. Or make the road tax annual / quarterly like it was before which will allow people to keep their original registration but pay tax in the state they are using the vehicle.

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