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  1. Car Buyer
  2. RTO Registration & Tax
  3. Monday, April 07 2014
I need to know, is it legal for a dealer to hold car registration papers, post car delivery. as per last official communication - there GM told me, as i have taken bank loan through them - the car is hypothecated to bank and its there responsibility or bank responsibility to get registration done

Been i have purchased the car, i want to get registration done on my own - at my home town of Dehradun, also the road tax fees is lower there as against Ghaziabad - i can save 10,000 - 12,000 - but dealer denying to hand me over papers

Pl advise - what is the way to get my registration papers from dealer.
Admin Accepted Answer
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Hello,

I will try to explain you position of car dealer,
See Bank do have a legal agreement with all dealers - that once they receive the bank disbursement payment, its there responsibility

a) To hand over RC Copy with due HP to Bank
b) Hand over Invoice, Insurance with due HP to Bank

Though - its also mention in customer loan agreement kit too (who is taking loan) - but dealer as is involved in registration process - becomes first point of contact and is generally accountable for handing over RC, Insurance copy with Hypothecation to Bank with a specified period of 60 days to 90 days, from date of disbursement of loan.

Been - Auto Loan is a secured loan, so collateral here is the asset i.e car. And a car can only be termed as collateral, if
- RC, Insurance and Invoice Documents has Hypothecation of Bank to it

Been in self registration - its much possible that HP may be removed - as a risk, dealers do not hand over registration documents to customer

Now - coming to your point - if you keen for self registration
a) Did you informed dealer in advance -- pre hand before loan disbursement
b) Did you informed bank - by sending a letter about your intent of registration in other city

If answer to above 2 is no - dealer may not hand over registration papers and if seeked, may ask you to cancel the loan and buy car on outright cash or own source of funds !! Hope it helps !!


  1. more than a month ago
  2. RTO Registration & Tax
  3. # 1
Praveen Accepted Answer
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Purchased new car Honda city from Nagpur,maharashtra.
Disbursement of loan through bank was done in March 2017 as per Mumbai on road pricing
I live in Mumbai & booking was done through DSA which is from Mumbai & he asked to do disbursement to authorized dealer in Nagpur.
Total vehicle value was 15.00 lacs as per DSA invoice out of which 14.00 lacs was paid through loan to dealer & balance to DSA by cheque
Crtm was generated by Dealer in Nagpur & have handed vehicle to DSA in april.
DSA delivered the vehicle to me after 15 days of crtm generated date with fancy number which he took from RTO by paying 5000/-
He said tax receipt & RTO Registration paperwork I will get after 2 months
It has been 6 months Still Dealer/Dsa nobody is doing rto registration in Mumbai by paying the amount of Disclaimer which have. Been generated by rto 1 month before by doing inspection of vehicle.
Dealer saying they are not responsible for rto registration as booking done through DSA & they have completed crtm
DSA have given Cheque for registration amount refund asking me to do registration but that Cheque he made stop payment in bank.
In April 2017 Octroi was applicable on vehicle in Mumbai but Dealer/DSA have not paid that amount also to authority's.
Bank is behind me for Rc registration & have told he not received in 1 week will cancel the loan & reverse the disbursed amount.
What action should I take
Plz help.
  1. more than a month ago
  2. RTO Registration & Tax
  3. # 2
Admin Accepted Answer
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@ Praveen

Bank can not cancel in the loan like this
They need refund amount back with complete interest. Been the loan agreement signed -
> Loan can be cancelled only if vehicle not delivered
> Pre close the loan if vehicle delivered

So dont worry - loan can not be cancelled like this
Now in respect to resolution

> Involve Bank and make a complaint against sourcing DSA for delaying in registration and thus making both Bank and customer at risk for driving a car which is not even registered with a hypothecation to Bank. If required write to all higher authorities in Bank and involve them so as to resolve the issue. The way you are looking forward for registration of vehicle, in similar way the Bank has to collect PDD (Post Disbursal Document as RC and Invoice with proper HP to call it a secured loan)

> Also Involve Manufacturer to make a complaint against Dealer for not doing registration. If you have paid amount for registration - ask dealer for registration and take him in loop or seek refund of registration amount with appropriate documents for registration (which am sure he wont give) - so make a press on OEM Honda Cars India for a lapse in sub standard approach in not registering car.

Hope should help !!
  1. more than a month ago
  2. RTO Registration & Tax
  3. # 3
Hamid hossain Accepted Answer
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My dealer Hyundai in bolbur west Bengal not handing over rc. It been 7 month I M trying to get it very time they console me and say that we r trying and we will contact you latter. That never happens. I have got my car registration no 6months back. Still they don't have my RC reday. What to dome they console me and say that we r trying and we will contact you latter. That never happens. I have got my car registration no 6months back. Still they don't have my RC reday. What to do.


  1. more than a month ago
  2. RTO Registration & Tax
  3. # 4
Shweta Singh Accepted Answer
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We have financed one auto to one of our customer. The dealer had provided the invoice copy and isurance copy but it has been 7-8 months the dealer had not submitted the requisite papers to RTO for RC. When we contacted the dealer, the dealer replied that they have some personal issues related to their address proofs due to which the RTO rejected their application for registeration. He console us that the matter will be sought out within 15-20 days. Now it has been almost 1 year and we have not received the RC copy. The dealer is not receiving our calls any more. The showroom is also closed. In this matter what action we should take against the dealer to get the registeration done.
  1. more than a month ago
  2. RTO Registration & Tax
  3. # 5
Admin Accepted Answer
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@ Shweta Singh

As you must be aware that a vehicle on loan without HP on RC will be termed unsecured
Suggest to approach customer directly and get registration done through your own sources and ensure for HP in RC

As the dealer is closed in - it would be difficult unless you take a legal route.
  1. more than a month ago
  2. RTO Registration & Tax
  3. # 6
Rohit asta Accepted Answer
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Hi same case goin on with me i buy my car in 2016.still now i didnt get my rc this dealership was closed after 2 months of my car purchase.my loan was clear when i contact bank they told me that this is dealers matter we cannot deal with car rc now i m trying to make it by my self i have only invoice copy and bill of car
  1. more than a month ago
  2. RTO Registration & Tax
  3. # 7
Deepak Accepted Answer
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If have done all payment, dealer has to provide papers to you. You can ask bank here to provide the letter/email asking dealer to handover the documents to customer. If dealer is not providing them you can FIR on dealer
  1. more than a month ago
  2. RTO Registration & Tax
  3. # 8
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