Red Fort blast shows how incomplete vehicle transfer leads to legal risks: Read real-life ordeals, consequences and understand the vehicle transfer process

On 10th November, a massive explosion occurred in a moving car, leading to the deaths of 13 people and over two dozen were injured. The Government of India has declared the incident a terrorist act. The explosion took place near Delhi’s Red Fort, and it has once again highlighted an important but often-ignored issue, that is, not transferring the ownership of a vehicle after selling it immediately. Some people sell their cars and invariably think that the buyer will get the paperwork done, but if the transfer is not completed officially, the car still rightfully belongs to the seller. And that can lead to serious trouble later if the vehicle is used for any crime or accident.

In the ongoing investigation into the Red Fort blast, several people who had owned the white Hyundai i20 in the past were questioned by the police because their names were still on record. Officials say that this happens more often than people realise. When a car changes hands several times without proper documentation, it becomes difficult to trace its real owner.

An officer investigating the case explained, “The car had changed ownership multiple times. The last person linked to it was from a sensitive area. Because of incomplete paperwork, tracing the real chain of possession has become complicated, and sometimes, this delay is exactly what criminals count on.”

Why transfer of ownership so important

According to transport officials, until the car’s Registration Certificate (RC) is officially transferred to the RTO’s records, the seller remains the legal owner. That means if the car is caught violating traffic laws, involved in a crash, or used in a crime, all legal responsibility falls on the seller.

A retired RTO officer speaking to the media explained, “People think selling a car is just about money. But it’s a legal transaction that needs proper documentation. The law requires the seller to inform the RTO within 14 days using Form 29, stating that the vehicle has been sold. Only after this, and the buyer’s application on Form 30, can ownership be updated.”

He also advised sellers to get an acknowledged and stamped copy of the submission as proof, which can save them in case of any future disputes.

Documents required before selling a car

• Registration Certificate (RC): The seller must have the original and valid RC of the vehicle.
  
• Pollution Under Control (PUC) Certificate: An updated copy of the PUC certificate should be available.
  
• No Objection Certificate (NOC): If the car is under a loan, the seller needs to obtain an NOC from the financer or the RTO.
  
• Insurance Certificate: The vehicle’s insurance policy must be valid at the time of sale.
  
• Address Proof: Any valid ID proof, such as Aadhaar Card, Passport, Voter ID, or Electricity Bill can be used.
  
• Vehicle Chassis Imprint: A physical rubbing of the chassis number is required for verification.
  
• Forms 29 and 30:
  
  • Form 29: Notice of Transfer of Ownership (two copies signed by both seller and buyer).
    
  • Form 30: Application for intimation and transfer of ownership.
    

What really happens in practice

While the process sounds straightforward, in reality, it’s often full of gaps. Many buyers or used-car dealers don’t complete the transfer immediately. Some wait until they find another buyer, while others just neglect it altogether. As a result, the original seller keeps getting SMS alerts or challan notices for a vehicle they no longer own.

Sometimes, informal agreements or handwritten sale papers are used instead of proper forms, which have no legal value. In other cases, the vehicle is resold multiple times through intermediaries, and the chain of ownership becomes unclear.

A senior traffic officer advised, “If the buyer delays the transfer or becomes unresponsive, file a written complaint with your local police. Provide all details, when you sold it, who bought it, and proof of your communication. It’s better to be proactive than end up in legal trouble later.”

Used-car dealers in Delhi admit that while they usually complete their paperwork, some buyers refuse to cooperate. “Many customers buy cars only to sell them again quickly, so they don’t bother transferring ownership to their name. When that happens, the original seller remains stuck,” said Lokesh Munjal, president of the Delhi Car Dealers Association.

Process of selling a car and transferring the ownership

First of all, all outstanding dues, including challans, fines and loans, must be cleared before initiating the ownership transfer. Both parties need to fill out Forms 29 and 30, as required. These forms can be downloaded from the Parivahan website. The buyer, within 14 days of purchasing the vehicle, needs to submit Form 29 at the RTO, intimating the authorities about the sale. Once the deal is initiated, it is the duty of the buyer to bring the vehicle for chassis verification at the RTO. The buyer needs to submit all necessary documents, including Form 30, to the RTO where the vehicle is registered. Once the verification is complete, the RTO will issue a new Registration Certificate for the vehicle in the buyer’s name. The seller must keep the stamped acknowledgment of the sale of the vehicle and submission of required documents to ensure he or she stays on the right side of the law.

A similar issue faced by Sadhvi Pragya in the Malegaon blast case

The dangers of incomplete vehicle transfers are not new. While there are several social media posts that speak volumes of the problems faced by the general public, there are cases where a delay in the transfer of the vehicle led to serious legal troubles. For example, a similar issue had surfaced in the infamous Malegaon blast case involving Sadhvi Pragya Singh Thakur.

The case revolved around a motorcycle used in the 2008 explosion that killed 6 and injured around 100 people. That bike, an LML Freedom, was registered in Sadhvi Pragya’s name. The prosecution argued that since the motorcycle belonged to her, she was linked to the blast. However, Pragya maintained that she had sold the bike years before the explosion and had completed all the required paperwork.

Despite her claim, the police continued to hold her responsible because the ownership transfer hadn’t been reflected in the official records. The registration details still showed her as the legal owner when the blast took place.

Later, investigators also found that the motorcycle’s engine and chassis numbers had been tampered with, and forensic tests couldn’t confirm whether it was indeed her bike. Several witnesses supported her claim that she had sold the bike earlier, but because her name remained on the registration, she became a key accused in the case.

Her defence also pointed out that she had renounced worldly possessions after becoming a sanyasi, including that bike. After a long legal battle lasting nearly 17 years, a special court acquitted her in July this year, saying the prosecution had failed to prove any solid link between her and the motorcycle used in the blast.

BREAKING NEWS Read More