The investigation into the November 10 Red Fort blast has revealed shocking vulnerabilities within the second-hand vehicle market operating in Delhi and its surrounding National Capital Region (NCR). Security loopholes, stemming from unregulated transactions and delayed ownership transfers, have been thrust into the spotlight following the terror incident.
The Car That Exposed The System
Central to the probe is a Hyundai i20 that was used in the explosion. Police discovered that the vehicle, originally sold in March, had never been officially transferred to a new owner, despite passing through the hands of three different car dealers over a span of seven months. Throughout this period, and even as its market value increased from Rs 1.3 lakh to Rs 2 lakh, the car's Registration Certificate (RC) stubbornly remained in the name of the original owner.
This critical lapse allowed authorities to trace the vehicle's first owner through the unchanged RC. The case of Bilal Ahmad Wani (55), a dry fruit seller who lived near an alleged member of the terror module, Dr Adeel Rather, further underscores the complex web uncovered by investigators.
A Market Operating in the Shadows
So, how widespread is this issue? The scale is significant. Officials estimate there are roughly 5,000 small, medium, and large second-hand car dealers operating within the national capital. A major concern is that this entire sector remains largely unorganized, operating without sufficient government checks and balances.
Dealers are free to buy and sell vehicles at prices determined solely by the car's condition, with little oversight. While the core concept of these traders is to provide a platform for sale and purchase, much like property dealers, the risks are far greater when documentation is flawed. If a vehicle is involved in a crime or accident before the ownership is legally transferred, the original seller could face severe legal complications.
The Right Way to Transfer a Vehicle
To understand the gaps, one must first know the correct procedure. The government has digitized the once manual process to make it more transparent and efficient.
The official process mandates that two forms—Form 29 and Form 30—must be filled out with the buyer’s and seller’s details and submitted to the transport authority. This is done through the VAHAN application, managed by the Ministry of Road Transport and Highways (MoRTH). Once both parties submit the generated OTPs, the transfer process is initiated with the government and typically takes just seven days. The updated RC is then delivered to the new owner's address within a month.
If handled directly between a seller and a buyer with all correct paperwork, the RC transfer can be completed in approximately two days. However, when dealers are involved, they often provide a No Objection Certificate (NOC) or an affidavit. The process can take a few extra days, but a more serious problem emerges.
The Dealer's Catch and Interstate Sales
Dealers frequently exploit a major loophole: if the new owner does not want the vehicle transferred to their name, the dealers simply do not submit the documents to the authorities. This allows them to artificially inflate the vehicle's market value, as a car's recorded value generally decreases with each subsequent sale. By hiding the details of previous sellers, dealers can present a car as having a more favorable history.
The Red Fort blast case also highlighted issues with interstate vehicle registration. Dealers reportedly sold the Hyundai i20 to buyers from another state by merely collecting identification documents and issuing NOCs. The process for an interstate transfer requires the owner to submit Form 28 along with the documents of both parties.
There is high demand for Delhi- or NCR-registered vehicles in other states. Dealers often prefer selling these vehicles outside the region, especially for cars nearing the end of their permissible life, as they can command a much better price.
The revelations from the November 10 blast serve as a stark warning, emphasizing the urgent need to streamline and regulate the rapidly expanding used-car market to close these dangerous security gaps.
