Government may scrap NOC requirement for inter-state vehicle transfers

The government may simplify the process of transferring vehicles between states by removing the requirement for a No Objection Certificate (NOC) from the original state’s Regional Transport Office (RTO). The proposal is currently under consideration following recommendations from a high-level committee on non-financial regulatory reforms set up by NITI Aayog.

The committee has suggested enabling inter-state vehicle transfers through an auto-generated clearance system, eliminating the need for vehicle owners to obtain an NOC from the state where the vehicle is originally registered. Officials familiar with the development said the Ministry of Road Transport and Highways is examining the proposal.

1. Reform could simplify vehicle re-registration across states
2. Committee also suggests shifting from age-based to fitness-based vehicle norms

Inter-state vehicle transfer process may be simplified

Auto-generated clearance system proposed

At present, vehicle owners must obtain a No Objection Certificate from the original state's RTO before initiating the registration process in another state. The NOC confirms that there are no pending road taxes, challans, or other dues against the vehicle.

To re-register a vehicle in another state, owners must submit documents, such as the registration certificate, fitness certificate and tax receipts, along with the NOC from the original RTO.

The committee noted that vehicle records are already stored digitally in the centralised VAHAN database, which can be accessed by transport authorities across states. With this system in place, verification of pending dues and vehicle records could be carried out automatically, potentially eliminating the need for a physical NOC.

Panel also recommends shift to fitness-based vehicle rules

Age limits for commercial vehicles may be reconsidered

The same committee has also suggested replacing age-based restrictions on vehicles with fitness-based eligibility norms. Currently, many regulations limit the age of vehicles based on the date of first registration. The panel noted that such rules can force older vehicles off the road even if they still meet fitness standards.

Instead, it recommended adopting a system that relies on regular and strict fitness inspections, similar to practices followed in many international markets. Under such a framework, commercial vehicles that meet safety and fitness standards could continue operating regardless of age