Circular of Transport Commissioner Maharashtra

Financers for vehicles, Banks, Finance Corporation, Co-operative societies etc to submit the Trade certificate.

State Transport Authority Office,

Administrative Bldg, 3^rd and 4^th Flr

Near Dr. Ambedkar Udhyan,

Commercial complex

Bandra – East, Mumbai – 400 051

CIRCULAR

No. MVR0904/CR-560/2(4)/Outward No.14366 dated 26 July 2007.

Note: 1) This office Circular No. MVR 0904/CR-560-A/ 2(4)

2) Letter from Reserve Bank of India DNBS.PD. No. 8579/03.07/001/2006-07 dated 14/06/2007 (copy enclosed)

1)   Through the circular from this office dated 05/1/2007, owner of the vehicle while purchasing, also mortgage of vehicles and pay the rent/  the finance companies that do the rent agreement/banks/finance corporation/co-operative societies, it is necessary that they should have the Trade certificate as per 1989 clause no 34.

2)   In opposition with this decision taken by the office, the Nagpur Hirer-Purchase Association and Kusumgar Finance and Marketing Co. had filed a petition No. 915/2007. The Hon’ble High Court, Nagpur had rejected the petition on 20/4/2007.

3)   Finance corporation/bank/Co-operative Credit societies head office should be given or not the Trade certificate or to give all the branch offices it is noticed that there is a confusion between the registrar officers and this institutions. The definition of Financer is well defined in the Motor Vehicle Act, 1989 clause no. 2(d), it states as below:

“Financer “ means a person or a title holder-cum-dealer who lets a motor vehicle on hire under an agreement of hire purchase or lease or hypothecation to the operator with a permission to get it registered in operator’s name as registered owner.

4)   As per this definition form no. 34 i.e. “Application for making an entry of an agreement of hire purchase/lease/hypothecation subsequent to registration”

It is necessary for the issuing head office, registration office and their branches to have the Trade certificate. Head office form no. 34 is declared that the branch offices do the job of maintaining records       then only the head office should possess the Trade certificate. Otherwise all the branches issuing form no. 34 should have the Trade certificate.

5)   To retain uniformity while issuing the Trade certificates in all offices, following points have to be followed for documentation.

A)   If the applicant Company, finance Company/finance Corporation-

i)                  Registration of Trade certificate copy from Reserve bank has to be received by the Banking finance company.

B)   If the applicant, is the Nationalized bank, Private bank, Schedule bank-

i)                  Letter of acceptance copy from Reserve Bank

C)   If the applicant is the Co-operative credit society-

i)                  The registration copy from the Registrar of Co-operative society is required.

D)  If the applicant is Credit Co-operative societies, private firm, individual –

i)                  As per the Bombay Money lending Act, 1946, Credit Co-operative societies, license copy.

ii)                If the Company is registered, its registration copy is required.

iii)             If the Company is a partnership firm its registration copy is required.

iv)             Applicant’s residential address and its proof of address.

E)   All the documents to be submitted by the applicant-

i)                  Under the Bombay Shop and Establishment Act, 1948, registration of the establishment copy (form D).

ii)                List of staff (signing authority under point No. 34 & 35)

iii)             Proof of address copy.

iv)             Telephone no. of the office, fax no. mobile no and email id.

State Transport Commissioner

Maharashtra State, Mumbai

Copy,

All Sub/Regional Transport officers

Copy enclosed for information-

Hon. Chief Secretary, Home (Transport) dept.

Mantralaya, Mumbai – 400 032

State Transport Commissioner

Maharashtra State, Mumbai