Govt May Ease Inter-State Vehicle Transfers by Removing NOC Requirement

According to a report, the central government is considering a proposal to simplify the process of transferring vehicles between states by removing the requirement for owners to obtain a No Objection Certificate (NOC) from the original state of registration.

The recommendation has been made by a high-level committee on non-financial regulatory reforms set up by NITI Aayog. The panel has suggested introducing an automated clearance system to facilitate inter-state vehicle transfers.

Officials said the ministry of road transport and highways is currently examining the proposal. If implemented, the reform could significantly reduce procedural hurdles for vehicle owners shifting their vehicles to another state.

At present, vehicle owners must obtain an NOC from the Regional Transport Office (RTO) where the vehicle is registered before applying for re-registration in a new state. The certificate confirms that there are no pending road taxes, challans or other dues linked to the vehicle.

To secure the NOC, owners must submit documents such as the vehicle’s registration certificate, fitness certificate and tax receipts. The application can be filed either online through the Parivahan portal or by visiting the RTO in person. Only after the NOC is issued can the vehicle be registered in the new state.

The NITI Aayog panel noted that most vehicle-related records are already stored digitally in the centralised VAHAN database. As a result, authorities across states can access these records online, reducing the need for a physical NOC document.

According to the panel, the digital system allows authorities to verify dues, compliance status and ownership records automatically. This would enable approvals to be processed electronically, eliminating the need for a hard copy NOC.

The committee also suggested a broader regulatory reform in the transport sector by recommending that vehicle eligibility be based on fitness rather than age.

Currently, several rules governing permits and aggregator licences impose age limits on vehicles, calculated from the date of first registration. The panel observed that such restrictions often render older but well-maintained vehicles economically unviable.

It noted that many countries rely on strict and frequent fitness inspections to determine vehicle roadworthiness rather than imposing blanket age-based restrictions. The panel suggested adopting a similar approach to ensure that vehicles meeting safety and emission standards can continue operating regardless of age.

Also read: Higher Green Tax on Older Cars, Better Scrapping Incentives in Maharashtra, Per Proposed Budget