Examiner Bureau | Srinagar:
The Jammu and Kashmir Transport Department has directed automobile dealers dealing in new and first-hand motor vehicles to obtain a valid Trade Certificate within 10 days, warning that dealers continuing to handle or operate unregistered vehicles without the mandatory certificate will face enforcement action, including penalties and prosecution.
The directive was issued by the Office of the Transport Commissioner, J&K, through a notification dated September 15, 2026, under the provisions of the Motor Vehicles Act, 1988 and the Central Motor Vehicles Rules, 1989.
The department said it had come to its notice that some automobile dealers were conducting business involving unregistered vehicles without obtaining the mandatory Trade Certificate from the competent Registering Authority.
Citing Rule 33 of the Central Motor Vehicles Rules, the department clarified that registration provisions do not apply to vehicles kept in a dealer’s possession under the specified dealer exemption unless the dealer holds a valid Trade Certificate and complies with the prescribed conditions.
The notification makes it clear that simply being engaged in the sale of new vehicles does not exempt a dealer from the applicable registration requirements.
Dealers who do not currently possess a valid Trade Certificate have been directed to apply for one under Rules 34 and 35 of the Central Motor Vehicles Rules within 10 days of the notification.
The department has also instructed dealers to ensure that no unregistered vehicle covered by the exemption is kept, moved, demonstrated, tested or otherwise used in a public place without a valid Trade Certificate and compliance with the applicable legal requirements.
Dealers have further been directed to comply with provisions governing the use of trade registration marks and the maintenance of prescribed records and registers.
The Transport Department warned that dealers continuing to trade in or operate unregistered vehicles after the 10-day period without a valid Trade Certificate would be liable for action under the Motor Vehicles Act and Central Motor Vehicles Rules.
It said that where an unregistered vehicle is driven, or is caused or allowed to be used, in a public place in violation of Section 39 of the Motor Vehicles Act, the dealer or person responsible may face the penalty prescribed under Section 192(1).
The notification also referred to Section 182A(1) of the Motor Vehicles Act, which provides for imprisonment of up to one year, a fine of up to ₹1 lakh per motor vehicle, or both for specified violations involving the sale, delivery, alteration or offer to sell or deliver a motor vehicle in contravention of applicable provisions.
The department has directed Registering Authorities and enforcement officers to inspect automobile dealerships after expiry of the 10-day compliance period.
The inspections will cover the possession, validity and scope of Trade Certificates, allotted trade registration marks, prescribed records and registers, as well as the movement and use of unregistered vehicles.
Dealers found operating without valid Trade Certificates or using unregistered vehicles in violation of statutory provisions will face appropriate proceedings, including prescribed penalties or prosecution wherever applicable, the department said.
Regional Transport Officers, Assistant Regional Transport Officers, Motor Vehicle Inspectors and other enforcement officials have been directed to ensure strict implementation of the notification within their respective jurisdictions.
The department described the 10-day period as a final opportunity for automobile dealers to regularise their operations by obtaining the requisite Trade Certificate and complying with the applicable motor vehicle laws.
