Delhi HC questions government over failure to regulate sale of old vehicles

The Delhi High Court on Wednesday (December 17, 2025) questioned the city government over its failure to regulate the sale and transfer of used vehicles, while pointing out that in a recent bomb blast near the Red Fort, a second-hand car was used.

A Bench of Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela asked the Delhi government to file a detailed response on the issue of regulating authorised dealers of registered vehicles.

“A car changes four hands but the original owner has not changed. Therefore, what happens? That man (the original owner) goes to the slaughterhouse? What is this? How are you permitting this? You will take a call when two-three more bomb blasts take place?” the Bench asked the Delhi government’s counsel.

The bomb blast near the iconic Mughal-era monument was carried out using a second-hand car, making the issue even more significant, the court as it listed the matter for further hearing in January 2026.

The court was hearing a public interest litigation (PIL) plea filed by an organisation, Towards Happy Earth Foundation, highlighting the challenges in the implementation of rules 55A to 55H of the Central Motor Vehicles Rules, introduced in December 2022 to regulate authorised dealers of registered vehicles.

The petition filed through advocate Vijay Kasana said while the rules were intended to bring accountability to the second-hand vehicle market, they have failed in practice due to regulatory gaps and procedural hurdles.

“In reality, most used vehicles pass through multiple dealers before reaching the final buyer, but the rules recognise only the first transfer to the initial authorised dealer. As a result, the chain of custody breaks after the first step, defeating the very purpose of accountability,” the petition said.

The plea said only a small fraction of India’s estimated 30,000 to 40,000 used-vehicle dealers are registered under the authorised-dealer framework.

The petition also pointed out that the 11-year-old vehicle used in the November 10 bomb blast near the Red Fort was sold several times but was still registered in its original owner’s name.