Apparently, nightmares come in a few familiar forms: turning up unprepared for an examination, desperately trying to reach somewhere on time or you/ your loved ones being threatened, chased or attacked.
Receiving a court summons in a motor accident compensation case involving your vehicle. The one you sold five years ago.
Ok, that one may not feature in psychology textbooks. But it is certainly a nightmare you do not want to experience.
A relative of mine did. Almost.
Last week, he received a traffic challan for a car he had sold years ago. Alarmed, he logged on to the Ministry of Road Transport and Highways’ Parivahan portal, only to discover that the vehicle was still registered in his name. The buyer had never completed the transfer of the Registration Certificate (RC). That meant that legally my relative was still responsible for anything to do with the vehicle.
The discovery was enough to ruin his week. And mine. Because his next outreach was to me.
There is an old saying: “It’s not done till the paperwork is done”. Nowhere is this truer than when selling a vehicle.
You cannot simply hand over the keys, the RC and the transfer forms, collect the money and move on. Until the ownership transfer is completed, you remain exposed.
Here is what should be done. Both buyer and seller must sign Forms 29 and 30, clearly mentioning the date of sale, and each should retain an original. The buyer should clearly be named with address, mobile number and an identity proof. This fixes the timeframe for transfer and identifies the buyer.
Brokers, many a time, take over the vehicle, claiming they are the buyers and then hunt for customers. That is why they will cajole you into signing blank forms. Please don’t.
The seller, you, should send a letter to your RTO, saying you have sold the vehicle and disclaiming any further liability. Attach copies of Forms 29 and 30, the identity proof of the buyer and sale proof. Send it by Speed Post, preserve the receipt, track the delivery online and keep proof of delivery safely.
To be fair, my relative had done everything required. Except check if the actual transfer had taken place.
Sadly, this is not an isolated case. I have heard several such stories. I have faced it myself.
One friend discovered that a vehicle he had long since sold had been implicated in an illegal drugs case. Imagine receiving notice of a fatal accident claim.
Point of sale formalities apart, the system itself needs improvement. Both buyer and seller should be able to track the ownership transfer online, and automatic alerts should be sent to them and to the authorities whenever a transfer remains incomplete beyond a reasonable period.
In an age of digital records, instant communication and online services, this is not too much to ask.
If the police can send us a traffic challan by SMS within seconds of a violation, surely our transport system can tell us when ownership of a vehicle worth several lakh rupees has not changed hands.
(The writer is a business journalist specialising in insurance & corporate history)
Published - July 27, 2026 06:53 am IST