Relocating vehicles in India - MoRTH's new policy

The BH series of registrations has commenced in full swing across most states, and promises to ease vehicle relocation.

Relocating vehicles in India - MoRTH's new policy

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• The storY: The Ministry of Road Transport and Highways (MoRTH) has finally notified the Bharat “BH” series of registration to free vehicle owners from the hassle of relocating a vehicle. Various states have started implementing the schemes locally, by issuing their own state rules.  [BH - Bharat]
• Earlier system: Under Section 47 of the Motor Vehicles Act, 1988, a person is allowed to keep the vehicle for 12 months in any state outside the registered state. New registration has to be made within 12 months

1. A No Objection Certificate (NOC) has to be acquired from the state where the vehicle is registered i.e. “parent state”.
2. The vehicle must be re-registered in the state where it is relocated
3. There is also issue of paying road tax to the new state. This charge is collected for 15 years upfront by the parent state and it has to refund the remaining 10 years’ road tax.

• The new BH series plan: It is a new system of registration of vehicles designed to reduce the red-tape. Vehicles bearing the BH registration mark will not require to be re-registered in a new state once it relocates. It will be completely online and will come into force from September 15 this year.

1. Eligibity - Anyone who is a government/PSU employee, state or Centre. In private sector, an employee of a company that has offices in at least four states/UTs is eligible on voluntary basis.
2. System of tax payment - The motor vehicle tax will be levied for 2 years or in multiple of 2 instead of paying the 15 years’ tax upfront. After the completion of 14th year, the tax shall be levied annually which shall be half of the amount which was charged earlier.
3. Road tax - It will be charged at 8% if the cost of the vehicle is below Rs 10 lakh. It is 10% for those costing between Rs 10-20 lakh. And for vehicles costing more than Rs 20 lakh, the tax is 12 per cent. Diesel vehicles will be charged 2% extra. Electric vehicles shall be charged 2 per cent less tax.

• Benefits of BH Series: It will ease the free movement of personal vehicles across any state in India, and also ease the ownership transfer of used vehicles. It will reduce the tax burden association with relocation, and promote transparency in the procedure. The incentives to electric vehicles paves way towards sustainable India.
• Voluntary: This vehicle registration facility under 'Bharat series (BH-series)' will be available on a voluntary basis to defence personnel, employees of central government/ state government/ central/ state public sector undertakings and private sector companies/organisations, which have their offices in four or more states/ Union territories. 
• EXAM QUESTIONS: (1) Explain the need for procedural simplicity in large systems. What benefits accrue to the users? (2) What should be the ideal road ahead for India - deepening of individual vehicle ownership or spread of mass rapid transit systems? Present a comparison.

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