Buyer not transferred ownership, not renewed fitness, defaulted tax, sold car still registered to me
S MUKHERJEE
(Querist) 18 November 2015
This query is : Resolved
I gave away my old car in exchange-sale to a car showroom in 2011. They sold it to someone who applied for transfer of ownership and renewal of fitness. Though I tendered my sale verification at RTO, I later came to understand much later that the buyer had aborted the process thereby retaining the car with its fitness lapsed but still registered under my name. By 2012, the tax also defaulted. I also came to know that in 2014 he might have disposed the car as scrap. Meanwhile the unpaid taxes and fines are accumulating in my name. I neither have the car with me nor its registration certificate (RC). He is also not giving me back the RC for surrendering to RTO for cancellation of registration. I need your expert advice as to how to cancel registration of this car and get the tax dues clear under such situation.
Anupam Lahiri
(Expert) 19 November 2015
From the case it appears that the essential aspects of the legal compliance has not been made.
Sale of a car is not equated to the sale of any other moveable property. At the time of sale of your old car, it ought to be made to the car dealer in a full proof manner.
S MUKHERJEE
(Querist) 19 November 2015
Respected Mr Lahiri, thanks for reply. My query is how to solve this case permanently like clearing tax defaults and cancelling the RC. It may be possible to claim the amount from the dealer and/or buyer thereafter. I had verified sale at office of RTO and given a copy of dak receipt issued in his name. But it appears that later on the buyer did not complete his formalities and took back the papers from RTO office, retained the car and so on. How do I get this issue closed now?
Anupam Lahiri
(Expert) 19 November 2015
It is a pure case of cheating. You may file a criminal case against the dealer.
You may contact a good advocate for this purpose.
K.S.Srinivas
(Expert) 20 November 2015
Agreed with Sri Anupal Lahiri.
S MUKHERJEE
(Querist) 20 November 2015
Lot many thanks to Mr Lahiri and Mr Srinivas. I think it would be worthwhile to retrieve the original RC from the buyer/dealer. Next, to surrender the RC to RTO for cancelling the registration of the car. The onus of unpaid taxes, I presume, will rest with me, but herein I would be able to take legal step to recover the same and other damages from the dealer/buyer or both. For your kind views please.
S MUKHERJEE
(Querist) 22 December 2015
I want to share updates on this:
I had lodged police complaint and the police have contacted the buyer and retrieved the original RC book (fitness lapsed since Nov 2011), original sale receipt, original Form 29 & 30 with signatures of mine and buyer and also sale verification signatures authenticated by RTO's officer, original notesheet of RTO, photocopy of tax papers (defaulted since Dec 2012). Moreover the buyer had discharged an affidavit cum indemnity note duly notarized stating his actions and that he will be responsible for any issues and liabilities. The car is however not with him and he has allegedly sold it off as scrap. Police are contacting the scrapper and may help in securing some certificate of scrapping and / or affidavit from the scrapper as well. Now, I understand that there is a tax default against the sold car still in my name. The lifetime tax burden would be around Rs 40,000/-, though RTO has not yet issued any demand notice. As per WBMV tax rules, the person in whose possession the car was (even if name not transferred) should pay the tax if he has taken possession of the car from registered owner. Also, if the car is allegedly scrapped, shouldn't the original RC to be surrendered for de-registering the vehicle. What should be my stand now?
