1. The Danger: Supreme Court Naveen Kumar Ruling
In *Naveen Kumar vs. Vijay Kumar (2018)*, the Supreme Court of India held that:
*"The person whose name is reflected in the records of the registering authority is the owner of the vehicle for the purposes of the Motor Vehicles Act, irrespective of whether physical possession and full consideration have been handed over."*
If the buyer causes a fatal accident or runs through toll/speed radars, the police and courts will issue summons and warrants to you (the seller).
2. Step 1: Issue 7-Day Legal Notice to Buyer
Send an advocate-drafted Legal Demand Notice via Registered Speed Post giving the buyer 7 days to complete Form 30 submission on Vahan. Mention the exact date, time, and consideration received in the Delivery Note.
3. Step 2: Request RTO "Ownership Dispute" Blacklist
Submit an application to the Registering Authority (RTO) with:
4. Step 3: File Police Intimation & Sale Agreement Affidavit
Submit a written intimation letter to the local Traffic Police Station along with a ₹100 notarized indemnity bond. This protects you against hit-and-run investigations and unauthorized crime usage.
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Start Free Sandbox (5 Vehicles) →Frequently Asked Questions
Who is liable if a buyer crashes the car before RC name transfer is complete?
According to the Supreme Court of India, the person whose name appears on the RTO RC book remains strictly liable for third-party compensation and accident claims.
Can the seller request the RTO to blacklist or block the vehicle?
Yes. You can submit a written representation along with the signed Delivery Note and Form 29 copy requesting the RTO to flag the vehicle under "Ownership in Dispute / Intimation Filed".