Background
Chapter II of the Motor Vehicles Act 1988 deals with the licensing of drivers of motor vehicles. It lays down the legal framework for grant of learner’s licence and driving licence, eligibility conditions, disqualifications, and regulatory control over driving competence. The chapter ensures that only qualified and authorised individuals are permitted to drive motor vehicles in public places.
Chapter IV governs control of transport vehicles, including permits, usage conditions, and regulatory oversight for vehicles used for commercial or transport purposes. These chapters collectively establish the legal foundation for vehicle registration, certification, and lawful operation on public roads.
Chapter XI of the Motor Vehicles Act, 1988 deals with insurance of motor vehicles against third-party risks. It mandates compulsory insurance coverage to protect third parties from injury, death, or property damage arising out of the use of motor vehicles in public places
Applicability
Applicable to all motor vehicle owners, manufacturers, dealers, and transport operators using or intending to use motor vehicles in public places, including transport and non-transport vehicles, across India.
Compliance requirements under the Act in Accordance with the Rules
Rule 14:
The applicant must apply in Form 4 and attach all mandatory documents. This includes an effective learner’s licence for the relevant vehicle class, the applicable fee under Rule 32, three recent passport-size photographs, and a medical certificate in Form 1-A (except where exempted). A driving school certificate in Form 5 must be provided if training was received. Proof of residence and proof of age are compulsory.
Driving licences must be issued in Form 7
An application for grant/renewal of trade certificate shall be made electronically on the VAHAN portal in Form 16. An application by a dealer of a motor vehicle shall be accompanied by a Dealer Authorization Certificate in Form 16A issued electronically on portal by concerned manufacturer of motor vehicle
Form 17 is issued by the registering authority within 30 days after verifying that the applicant is a bona fide dealer and requires the trade certificates applied for.
A trade registration mark shall be the trade certificate number followed by four digit numerals starting from 0001 to 9999, for example: AB 12 A 1234 TC 0001, in which,-
(I) AB-Represents State Code,
(ii) 12-Represents RTO Code,
(iii) A Represents serial number of class of vehicle as prescribed in Rule 34(2) i.e. from A to J,
(iv) 1234-Represents four digit unique identification number to be assigned by the concerned authority to the holder of a trade certificate,
(v) TC-Represent trade certificate.
Trade certificate along with dealership authorization certificate shall be exhibited at a conspicuous place at show room and workshop or service centre.
An application for the grant of additional trade registration mark shall be made electronically on portal in Form 17A to the registering authority which granted the trade certificate and shall be accompanied by the appropriate fee as specified in rule 81, to be paid electronically on the portal.
Manufacturers can apply for an additional trade registration mark in Form 17A, and the registering authority must issue Form 17B within 15 days from the date of receipt of application if the manufacturer holds a valid trade certificate and demonstrates the need for an additional trade registration mark.
If the place of business specified in the trade certificate is changed, then the holder of trade certificate shall immediately intimate to the authority which granted trade certificate about such change electronically on the portal in Form 17C accompanied by appropriate fee in rule 81
Manufacturers or dealers must ensure each trade registration mark is used on only one vehicle at a time, only on vehicles legitimately in their possession and of the approved type and must display the mark in white on red at the front and rear as per Rule 51.
A trade registration mark here shall be the trade certificate number followed by four digit numerals starting from 0001 to 9999, for example: AB 12 A 1234 TC 0001, in which,-
(I) AB-Represents State Code,
(ii) 12-Represents RTO Code,
(iii) A Represents serial number of class of vehicle as prescribed in Rule 34(2) i.e. from A to J,
(iv) 1234-Represents four digit unique identification number to be assigned by the concerned authority to the holder of a trade certificate,
(v) TC-Represent trade certificate.
A trade registration mark shall be used only by the person to whom it is issued, and such person shall not allow or offer or cause the trade registration mark or the number assigned in connection therewith to be used by any other person
The provision of this rule shall not apply where the person to whom the registration mark is granted, or a person bona fide in his employment and acting under his authority, or any other person bona fide acting on behalf of the holder of a trade registration mark is present in the vehicle, or if such vehicle is designed for use by only one person and is being used by a prospective purchaser of that vehicle for the purpose of reasonable test or trial.
A holder of a trade registration mark may use a vehicle in a public place only for the following purposes: (a) testing during or after construction or repair; (b) going to or from a weighbridge for weighment or to any place for its registration; (c) reasonable trial or demonstration for a prospective purchaser, including travel to or from the place where the purchaser intends to keep it; (d) proceeding to or returning from the premises of a dealer, purchaser, or another dealer for delivery; (e) going to or from a workshop for body building, painting, or repairs; (f) proceeding to or returning from an airport, railway station, or wharf for or after transport; (g) going to or returning from an exhibition or place where the vehicle is or has been offered for sale; (h) proceeding to or returning from the manufacturing plant, regional sales office, godown, workshop, authorised dealer, or any other place of sale; or (i) for export-related movement up to the place of embarkation.
No holder of a trade certificate shall deliver a motor vehicle to a purchaser without registration, whether temporary or permanent.
Every holder of a trade certificate shall maintain a register electronically in Form 19 on the Portal for motor vehicles
Every dealer or motor vehicle holding a trade certificate shall maintain a register of inventory of motor vehicles electronically in Form 19A on the portal.
Every dealer of motor vehicles holding a trade certificate shall display model wise vehicle sale price at conspicuous place in his business premises, displayed vehicle price shall be with bifurcation of all applicable taxes and fees
Certificate of registration shall be issued in Form 23A within 2 days from date of receipt of application in case of a motor vehicle whose body has been fabricated separately to the purchased chassis
The dimensions of letters and figures of the registration mark and the space between different letters and numerals and letters and edge of the plain surface shall be as laid down in Rule 51 the Central Motor Vehicles Rules 1989
1)Registering authority shall within seven days from the date of receipt of Part I of Form 22C grant approval in Part II of Form 22C either electronically on portal or in physical form to the owner if the proposed alteration is permissible under notified conditions, standards and specifications issued U/s 52of the Act
2) Where the registered authority does not approve/reject the application for prior approval within 7 days of receipt of Form 22C, prior approval shall be deemed to be granted
When a motor vehicle is altered or retrofitted as per Rule 112(1) or (2), the owner must apply within 14 days of issuance of certificate of compliance to have the alteration/retrofitment recorded in the certificate of registration. The application shall be made in Form 22, electronically through the designated portal, and must include the RC and the required fee. If no prior approval was sought under Rule 47A(1), the owner must apply for endorsement of alteration/retrofitment within 14 days of carrying out the alteration/retrofitment.
Where any motor vehicle is altered to convert it into adapted vehicle as per Rule 112A, the owner of the vehicle shall make an application for making an entry of the adapted vehicle in the certificate of registration in the state in which he has residence or place of business where the vehicle is normally kept or in which alteration is made in Form 22E electronically on a portal either accessed by the applicant himself or with the help of facilitation centre or otherwise along with the certificate of registration
Display of registration marks at front and rear using security licence plates per Rule 50. For CEVs, plate sizes must be 500×120 mm, 340×200 mm, 200×100 mm, or 285×45 mm based on equipment size and space.
Plates shall be a solid 1.0 mm aluminium unit as per AIS 159:2019, with rounded 10 mm edges, embossed border, and hot-stamp-ready reflective sheet guaranteed for 5 years. “IND” in blue, one-fourth the letter size in Rule 51, must be hot-stamped and integral. Each plate shall have a chromium-based hot-stamped hologram, no stickers, and a permanent 10-digit laser-branded ID with verification inscription. A self-destructive chromium-based hologram sticker (third registration mark) shall be fixed on the left-top of the windshield with printed registration details. It shall be issued with regular plates and reissued if destroyed. Plates must use non-removable snap-lock fittings. New and old vehicles shall get plates from the registering authority, manufacturers, or approved dealers, and sizes shall follow the Rule. Further provisions w.r.t above are detailed in Rule 50 of CMV Rules
The registration mark shall be exhibited in two lines, the State code and registering authority code forming the first line and the rest forming the second line, one below the other:
Provided that the registration mark in the front may be in one line, in case, in 200 mm x 100 mm size plate, there is no sufficient place to exhibit the registration mark in one line, the registration mark may be exhibited in two lines
Provided that in models of two vehicles having no sufficient provision at the rear to exhibit the registration mark in two lines, it shall be sufficient if in such vehicles registration mark is exhibited in a single line:
Provided further that registration mark on a light motor vehicle may be in the centre with illumination.
In case of battery operated vehicles, the registration mark shall be exhibited in white colour on green background except transport vehicles
For more details, refer to Rule 50 of CMV rules 1989
Every dealer or motor vehicles holding a trade certificate shall maintain a register of inventory of motor vehicles electronically in Form 19A on the portal.
Every dealer of motor vehicles holding a trade certificate shall display model wise vehicle sale price at conspicuous place in his business premises, displayed vehicle price shall be with bifurcation of all applicable taxes and fees
Certificate of registration shall be issued in Form 23A within 2 days from date of receipt of application in case of a motor vehicle whose body has been fabricated separately to the purchased chassis
Where the Owner of a Motor Vehicle intends to alter or retrofit the motor vehicle as per Rule 112(1) & (3), the owner shall seek the prior approval of the registering authority either electronically through the portal or in physical form in Form 22C
1)Registering authority shall within seven days from the date of receipt of Part I of Form 22C grant approval in Part II of Form 22C either electronically on portal or in physical form to the owner if the proposed alteration is permissible under notified conditions, standards and specifications issued U/s 52of the Act
2) Where the registered authority does not approve/reject the application for prior approval within 7 days of receipt of Form 22C, prior approval shall be deemed to be granted
When a motor vehicle is altered or retrofitted as per Rule 112(1) or (2), the owner must apply within 14 days of issuance of certificate of compliance to have the alteration/retro fitment recorded in the certificate of registration. The application shall be made in Form 22, electronically through the designated portal, and must include the RC and the required fee. If no prior approval was sought under Rule 47A (1), the owner must apply for endorsement of alteration/retro fitment within 14 days of carrying out the alteration/retro fitment.
Where any motor vehicle is altered to convert it into adapted vehicle as per Rule 112A, the owner of the vehicle shall make an application for making an entry of the adapted vehicle in the certificate of registration in the state in which he has residence or place of business where the vehicle is normally kept or in which alteration is made in Form 22E electronically on a portal either accessed by the applicant himself or with the help of facilitation centre or otherwise along with the certificate of registration
Display of registration marks at front and rear using security licence plates per Rule 50. For CEVs, plate sizes must be 500×120 mm, 340×200 mm, 200×100 mm, or 285×45 mm based on equipment size and space.
Plates shall be a solid 1.0 mm aluminium unit as per AIS 159:2019, with rounded 10 mm edges, embossed border, and hot-stamp-ready reflective sheet guaranteed for 5 years. “IND” in blue, one-fourth the letter size in Rule 51, must be hot-stamped and integral. Each plate shall have a chromium-based hot-stamped hologram, no stickers, and a permanent 10-digit laser-branded ID with verification inscription. A self-destructive chromium-based hologram sticker (third registration mark) shall be fixed on the left-top of the windshield with printed registration details. It shall be issued with regular plates and reissued if destroyed. Plates must use non-removable snap-lock fittings. New and old vehicles shall get plates from the registering authority, manufacturers, or approved dealers, and sizes shall follow the Rule. Further prov. w.r.t above are detailed in Rule 50 of CMV Rules.
The registration mark shall be exhibited in two lines, the State code and registering authority code forming the first line and the rest forming the second line, one below the other:
Provided that the registration mark in the front may be in one line, in case, in 200 mm x 100 mm size plate, there is no sufficient place to exhibit the registration mark in one line, the registration mark may be exhibited in two lines
Provided that in models of two vehicles having no sufficient provision at the rear to exhibit the registration mark in two lines, it shall be sufficient if in such vehicles registration mark is exhibited in a single line:
Provided further that registration mark on a light motor vehicle may be in the centre with illumination.
In case of battery operated vehicles, the registration mark shall be exhibited in white colour on green background except transport vehicles
For more details, refer to Rule 50 of CMV rules 1989
Where any alteration has been made in motor vehicle without the approval of registering authority the owner of the vehicle shall, within fourteen days of the making of the alteration, report the alteration to the registering authority within whose jurisdiction he resides and shall forward the certificate of registration to that authority together with the prescribed fee in order that particulars of registration may be entered therein.
No owner of a motor vehicle shall so alter the vehicle that the particulars contained in the certificate of registration are at variance with those originally specified by the manufacturer:
Any alteration or retrofit under section 52(1)—including change of fuel, propulsion conversion, engine or chassis replacement, or body modification— must comply with Central Government standards and be carried out by the OEM, authorised dealer, State-authorised workshop, or State-authorised service station. Chassis replacement is allowed only if the new chassis is from the same manufacturer, of the same type, and not used for another vehicle type.
Alteration or retrofit of safety or other equipment under section 52(1A) must meet Central Government-notified standards and be performed by the same authorised entities.
Compliance for alterations under sub-rule (1) must be tested by Rule-126 agencies or self-certified by the authorised entity performing the work, which must issue Form 22F. Compliance of alterations under sub-rule (2) must be type-approved by Rule-126 agencies and self-certified by the authorised entity, which must also issue Form 22F.
Compliance for alterations under Rule 112(1) must be tested by Rule-126 agencies or self-certified by the authorised entity performing the work, which must issue Form 22F. Compliance of alterations under Rule 112(2) must be type-approved by Rule-126 agencies and self-certified by the authorised entity, which must also issue Form 22F.
(1) Any alteration to a motor vehicle under sub-section (2) of section 52 of the Act, to convert it to an Adapted Vehicle shall be in compliance with the conditions notified by the Central Government under this rule or any other applicable rule, and shall be carried out by either,-
(i) original equipment manufacturer; or
(ii) dealer of the vehicle manufacturer; or
(iii) workshop authorised by the State Government; or
(iv) service station authorised by the State Government.
(2) Either the original equipment manufacturer or dealer of the vehicle manufacturer or workshop authorised by the State Government or service station authorised by the State Government, making the alteration under sub-rule (1), shall issue a certificate of compliance in Form 22G, either electronically on the Portal or in physical form to the owner.
(1) Any alteration to a motor vehicle under sub-section (2) of section 52 of the Act, to convert it to an Adapted Vehicle shall be in compliance with the conditions notified by the Central Government under this rule or any other applicable rule, and shall be carried out by either,-
(i) original equipment manufacturer; or
(ii) dealer of the vehicle manufacturer; or
(iii) workshop authorised by the State Government; or
(iv) service station authorised by the State Government.
(2) Either the original equipment manufacturer or dealer of the vehicle manufacturer or workshop authorised by the State Government or service station authorised by the State Government, making the alteration under sub-rule (1), shall issue a certificate of compliance in Form 22G, either electronically on the Portal or in physical form to the owner.
Any alteration to convert a vehicle into an Adapted Vehicle must follow Central Government conditions and be done by the OEM, authorised dealer, State-authorised workshop, or service station. The entity performing the alteration must issue a compliance certificate in Form 22G, electronically or in physical form.
Certificate of insurance to be issued in Form 51
Owner must inform the authorised insurer within 14 days of adaptation endorsement in RC and submit endorsed RC so insurer updates records
Penalty & Punishment
(1) Manufacturers / Importers / Dealers – Selling or Altering Non-Compliant Vehicles
(2 )Sale of Non-Compliant Critical Safety Components Penalty:
(3) Vehicle Owners – Illegal Alteration / Retrofitting Penalty:
(4) Section 177: General Penalty
(5) Rule 44 –
(6) Section 196. Driving uninsured vehicle
Criminal offence:
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