The Transport Department, Government of Chhattisgarh, on June 1, 2026, issued a draft amendment to the Chhattisgarh Motor Vehicles Rules, 1994 proposing a regulatory framework for authorized dealers engaged in the purchase and sale of used vehicles. The draft, issued under Section 65 of the Motor Vehicles Act, 1988, invites objections and suggestions within 30 days from publication in the Official Gazette.
The proposed amendment introduces a requirement for authorized used-vehicle dealers to furnish bank guarantees ranging from ₹1 lakh to ₹5 lakh, depending on the category of motor vehicle covered under the trade certificate. The framework covers motorcycles, light motor vehicles, passenger and goods vehicles, e-rickshaws, e-carts, and other specified vehicle categories. Dealers would also be required to maintain electronic records and inventories through the designated portal, including reporting vehicle acquisition, return of vehicles to owners, inventory management, and maintenance of electronic registers in prescribed forms under the Central Motor Vehicles Rules, 1989.
The draft further mandates compliance with statutory requirements relating to hypothecated or mortgaged vehicles, availability of adequate parking facilities, fire safety measures, submission of genuine documentation, and clearance of outstanding dues. The registering authority would be empowered to review compliance and, after providing an opportunity of hearing, take enforcement action including suspension or cancellation of authorization certificates and forfeiture of the bank guarantee in cases of violations or non-compliance. The proposal seeks to strengthen transparency, accountability, and consumer protection in the organized used-vehicle market.
[Notice No. F RULE/504/2026-TRANSPORT]
