Centre Proposes Extending Interstate Vehicle Stay Without Re-Registration From One Year To Three
Draft amendments to the Motor Vehicles Act seek to ease interstate movement of vehicles by extending re-registration deadline to 3 years | Surabhi Gupta reports.
Published : July 7, 2026 at 4:28 PM IST
New Delhi: The Ministry of Road Transport and Highways has proposed extending the period during which a vehicle can remain in another state without re-registration from the current 1 year to 3 years.
The proposal, part of the draft amendments to the Motor Vehicles Act under the government's "ease of living" initiative, was discussed before an informal Group of Ministers (iGoM) last week.
At present, Section 47 of the Motor Vehicles Act requires owners to re-register their vehicles if they remain in another state for more than 12 months. Officials said the proposed change is intended to benefit employees in transferable jobs, professionals on long-term assignments, students, and others who are likely to return to their home state after 2-3 years.
"Re-registration of a vehicle in a new state and revoking it after returning to the home state is a hassle for people," an official said, adding that the move would complement the existing Bharat (BH) series registration, which already allows eligible vehicle owners to move across states without fresh registration.
Consumer Activist Calls For Ending Double Taxation
However, consumer rights activists say the proposal does not go far enough. Consumer advocate Bejon Kumar Misra told ETV Bharat that the real issue is the double taxation faced by vehicle owners.
"I have been a victim. Why three years? Why not allow it for the full 15-year validity period, given that road tax is already collected in advance? I paid tax in Delhi and then had to pay again in Telangana. I was supposed to get a refund from the Delhi government, but it hasn't happened yet. I am told it never will. This is a highly unfair policy," Misra said.
Former Deputy Commissioner of the Delhi Transport Department, Anil Chhikara, welcomed the proposal, saying the existing one-year rule has caused unnecessary harassment to thousands of people relocating temporarily.
"The proposal of allowing vehicles to remain in another state for three years is a welcome step. Thousands of people move to other states for service, business or temporary assignments. States like Karnataka and Maharashtra have insisted on re-registration after one year, failing which vehicle owners often face challans and penalties running into lakhs of rupees," he told ETV Bharat.
He added that many owners are treated as though they have committed an offence despite having paid one-time road tax.
"These vehicle owners have already paid tax and are legally allowed to drive across the country. The 12-month limit creates more problems than convenience. Since the VAHAN portal is now common across India, there should be greater flexibility in interstate movement of vehicles. The BH series is a good alternative, but it also has limitations," Chhikara said.
Transporters Seek Nationwide Mobility Without Re-Registration
Transporters believe the reform should go a step further by eliminating the need for re-registration altogether.
Rajendra Kapoor, President of the All India Motor and Goods Transport Association, Delhi, said vehicles should be allowed to operate freely across India regardless of where they are registered.
"The government should introduce a policy that allows vehicles to be used across all states without requiring re-registration after relocation. That would be a meaningful reform. Trucks travel across the country every day. Vehicles are meant to move across India, not remain confined to one state. If I have offices in Delhi and Uttarakhand, naturally my vehicle will be used in both places," Kapoor told ETV Bharat.
Apart from easing interstate vehicle movement, the ministry has also proposed inserting a new provision in the law requiring states to appoint adjudicating authorities and establish electronic systems for compounding penalties within six months.
The change follows the decriminalisation of several offences under the Motor Vehicles Act, allowing executive authorities to impose penalties rather than courts.
If approved, the proposed amendments are expected to reduce paperwork, reduce the compliance burden, and offer significant relief to lakhs of professionals, students, transferable employees, and families who relocate across states for work while retaining their vehicles.
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