SRINAGAR: Dealers handling new vehicles without a valid Trade Certificate will face enforcement action, including penalties and prosecution, under motor vehicle laws.
The Jammu and Kashmir Transport Department has directed all automobile dealers dealing in first-hand and new motor vehicles to obtain a valid Trade Certificate within 10 days, warning that those continuing to operate unregistered vehicles without the certificate will face enforcement action.
The directive was issued by the Office of the Transport Commissioner, J&K, through a notification dated September 15, 2026, citing the Motor Vehicles Act, 1988 and the Central Motor Vehicles Rules, 1989.
The department said it had come to its notice that certain automobile dealers were conducting business involving unregistered vehicles without obtaining the mandatory Trade Certificate from the competent Registering Authority.
Under Rule 33 of the Central Motor Vehicles Rules, the registration provisions do not apply to vehicles in a dealer’s possession only when the dealer holds a valid Trade Certificate and complies with the prescribed conditions.
The notification makes it clear that merely being engaged in the sale of new vehicles does not entitle a dealer to claim exemption from registration.
Dealers who do not already possess the certificate have been directed to apply for its grant under Rules 34 and 35 of the Central Motor Vehicles Rules within 10 days of the notification.
The department has also directed dealers to ensure that no unregistered vehicle is kept, moved, demonstrated, tested or otherwise used in a public place under the dealer exemption unless they possess a valid Trade Certificate and comply with the applicable legal requirements.
Dealers have further been asked to comply with provisions governing the use of trade registration marks and the maintenance of prescribed records and registers.
The Transport Department warned that any dealer continuing to trade with or operate unregistered vehicles after the 10-day period without a valid Trade Certificate will be liable for action under the Motor Vehicles Act and the Central Motor Vehicles Rules.
It said that where an unregistered vehicle is driven, or 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 would be liable to the penalty prescribed under Section 192(1).
The notification also cited Section 182A(1) of the Motor Vehicles Act, which provides for imprisonment of up to one year, a fine of Rs 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 the applicable provisions.
Registering Authorities and enforcement officers have been directed to inspect automobile dealerships after the expiry of the 10-day period. The inspections will cover possession, validity and scope of Trade Certificates, allotted trade registration marks, prescribed records and registers, and the movement or use of unregistered vehicles.
The department said appropriate proceedings, including prescribed penalties or prosecution wherever applicable, would be initiated against dealers found operating without valid Trade Certificates or using unregistered vehicles in violation of statutory provisions.
Regional Transport Officers, Assistant Regional Transport Officers, Motor Vehicle Inspectors and other enforcement officers 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 dealers to regularise their operations by obtaining the requisite Trade Certificate.
