Simplify Inter-State Vehicle Transfers by Linking RTO, Police Databases

For anyone shifting their residence between states, it is a big hassle to get your vehicle transferred legally. In the scheme of things, the task of physically transferring the vehicle to the new location is the easiest step of the process!

Just to recap, the following are the steps:

1) First you need to get a NOC from the local Police Station certifying that you have no police cases pending against your vehicle.

2) Then, you need to apply for a pro-rated refund of the Road Tax already paid in the previous state.



3) Thirdly, you need to pay the required Road Tax in the new state after transferring the vehicle there.

4) Lastly, you need to re-register your vehicle in the new state and get a new local registration number.

Clearly, this is a labyrinthine process that has remained stuck in the 1980s. And as a result, people often prefer to sell their vehicles while shifting and purchase a new vehicle in the new place of residence. Or alternatively, they don’t follow the above procedures and continue to drive the car in the new state with the old registration number beyond the first year, which is illegal.

Karnataka Driving License

With today’s technology and interlinking of all state RTO and Police databases, it should be possible to vastly simplify this archaic procedure.

Also, it is silly to have differential Road Tax rates in different states. Such citizen-unfriendly tax laws should be repealed as part of the GST introduction and Road Tax must be made uniform across the country.

Here’s how a simplified process would look like:

1) After shifting to the new state, a person approaches the RTO and applies for formal transfer of registration.

2) New RTO approves the registration and assigns a local registration number.

3) New RTO internally notifies the local police about the new registration. Police enters this into a national Police database which will be visible to the Police in the old state as well. The old registration number will be linked to the new registration number and the new address of the owner, making it easy for the Police to track down the owner if and when required, if any cases are pending.

4) New RTO internally forwards a request to the old RTO for freezing of old registration number and for transferring pro-rated balance Road Tax to the new RTO’s account. The owner would not need to pay any additional tax or apply for refund as the rates would be uniform across India.

As can be seen above, the procedure is vastly simplified with the owner only having to approach one single office (the new RTO) and submitting a single one-time application.

Such changes are required in several Govt. departments to facilitate smoother movement across the country, which has become a part of life today in this era of globalisation.


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14 Comments

  1. sunilsunil01-25-2016

    Hi… i already moved to Mumbai and also bike but till NOC not done…how to get NOC now when bike is in mumbai…

    • Vijay PadiyarVijay Padiyar01-25-2016

      You don’t need to show the bike to apply for NOC. Just submit the NOC application (CMV Form 28) in the RTO where vehicle is currently registered.

  2. P S NathP S Nath01-22-2016

    Hi Vijay,

    I have an interesting question on GST who are planning to buy vehicles from different state and want to transfer and register the vehicle in his name in different state where he lives. Assuming a scenario stated under……

    A car which was purchased in 2010 by Person X (First Purchaser) in the State A and given Road Tax for 10 years in the State A itself. A Person Y (Second Purchaser) resides in State B and wants to purchase the vehicle, transfer and re-register the vehicle in his own name in State B. So the vehicle age is 6 years and Person X already paid Road Tax for 10 years in the State A.

    Now the questions are…

    1. After roll out of GST how much amount of Tax need to be paid by Person Y while transfer and re-register the vehicle in State B?

    2. How GST would be applicable/helpful in this scenario against the current existing system?

    • Vijay PadiyarVijay Padiyar01-23-2016

      It is not clear to me if GST will include vehicle registration and road tax. Please share if you have any concrete information.

  3. RaviRavi12-04-2014

    hi vijay ji i have one uttarpradesh bike please give some idea and contact of transfar prosses. Model 1988 allhabad uttarpradesh royal enfild bullet

  4. Sridhar KSridhar K05-23-2014

    Hello Vijay, have your issues solved by producing only NOC or gone thru entire process? and request to share, how you solved please. As I am also in the list of sufferers

    Will be THANKFUL if you guide me

    Thanks and Regards

  5. SurjitSurjit03-12-2014

    Hi Vijay,

    Can I hv ur ph no plzzz………….

    • Vijay PadiyarVijay Padiyar03-12-2014

      Sorry please contact me via email or the feedback form on this website :).

  6. SushmaSushma02-21-2013

    Thanks a lot for information. It could be great if you can post the details (Process + documents to submit) of applying for refunding the tax from earlier state.

  7. pankajpankaj09-04-2012

    Hi Vijay,

    I am also contemplating transferring my car from TN to Maharashtra. Could u share with me th e proforma for police clearance certificate for my vehicle?

  8. Neeraj RajputNeeraj Rajput06-17-2012

    Dear Sir
    I have bough a second hand car. Its a 2007 Haryana registered vehicle.
    I need to transfer the vehicle in uttar pradesh.
    Would I be eligible to get the prorated refund? Or it only made available to the first owner?
    Please suggest how i can minimise the transfer expense?
    Would be obliged if you could provide an idea about the expense involved?

  9. ChaitanyaChaitanya04-03-2012

    All good and valid points. I have been told that inter state vehicle transfer procedure has been recently simplified by eliminating road tax and re-registration of the vehicle in the new state. Just submitting the NOC taken from the RTO of the previous state to the new one would suffice.

    Any comments on this?

    Good to see your website and important posts.

    Cheers,
    Chaitanya

    • Vijay PadiyarVijay Padiyar04-03-2012

      Hi Chaitanya, thanks a lot for sharing this piece of information! Readers will benefit from the same.

  10. Abinash SahuAbinash Sahu09-13-2011

    I strongly agree with you. Can we start a petition for this. I know there are lots of online forum : team-bhp, team-fiat, carwale, indiatransport. I am sure we will get lots of support to reform the 80’s act.

    I know it is tought to change teh act in India. But at some point we need to start

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