The Motor Vehicles Act, 1988

50. Transfer of ownership.

1. Where the ownership of any motor vehicle registered under this Chapter is transferred,--

1. The transferor shall,--

1. in the case of a vehicle registered within the same State, within fourteen days of the transfer, report the fact of transfer,  in such  form with  such documents and in such manner, as  may be  prescribed by  the Central Government to the registering  authority  within  whose  jurisdiction  the transfer is to be effected and shall simultaneously  send a  copy of the said report to the transferee; and
2. In the case of a vehicle registered outside the State, within forty-five days of the transfer, forward to the registering authority referred to in sub-clause (i)--

1. The no objection certificate obtained under section 48; or
2. In a case where no such certificate has been obtained,--

1. the receipt obtained under sub-section (2) of section 48; or
2. The postal acknowledgement received by the transferred if he has sent an application in this behalf by registered post acknowledgement due to the   registering authority referred to in section 48 together with  a declaration  that he has  not  received  any  communication  from  such authority refusing  to grant  such certificate  or requiring him to comply with any direction subject to which such certificate may be granted;

2. the   transferee  shall,  within  thirty  days  of  the transfer, report the transfer to the registering authority within whose jurisdiction  he has  the residence  or place  of  business where the vehicle is normally kept, as the case may be, and shall forward the  certificate  of  registration  to  that  registering authority together  with the  prescribed fee  and a  copy of  the report  received  by  him  from  the  transferor  in  order  that particulars of  the transfer  of ownership  may be entered in the certificate of registration.

2. Where--

1. The person in whose name a motor vehicle stands registered dies, or
2. a  motor vehicle  has been  purchased or  acquired at  a public auction  conducted by,  or on  behalf of,  Government, the person succeeding  to the  possession of  the vehicle  or, as the case may  be, who  has purchased  or acquired  the motor vehicle, shall make  an application  for the  purpose of  transferring the ownership  of  the  vehicle  in  his  name,  to  the  registering authority in  whose jurisdiction he has the residence or place of Business where the vehicle is normally kept, as the case may be, in such manner, accompanied with such fee, and within such period as may be prescribed by the Central Government.

3. If  the transferor  or the  transferee fails to report to the  registering authority the fact of transfer within the period specified in clause (a) or clause (b) of sub-section (1), as the case may be, or if the person who is required to make an application under sub-section (2)(hereafter  in this section referred to as the other person) fails to make such application within the period prescribed, the registering authority may, having regard to the circumstances of the case, require the transferor or the transferee, or the other person, as the case may be, to pay, in lieu of any action that may be  taken against  him under section 177 such amount not exceeding one hundred rupees as may be prescribed under sub-section (5):

Provided that action under section 177 shall be taken against the Transferor or the transferee or the other person, as the case may be, where he fails to pay the said amount.

4. Where a person has paid the amount under sub-section (3), no action shall be taken against him under section 177.
5. For the purposes of sub-section (3), a State Government may prescribe different amounts having regard to the period of delay on the part of the transferor or the transferee in reporting the fact of transfer of ownership of the motor vehicle or of the other person in making the application under sub-section (2).
6. On  receipt  of  a  report  under  sub-section  (1),  or  an application under sub-section (2), the registering authority may cause the transfer  of  ownership  to  be  entered  in  the  certificate  of registration.
7. A   registering  authority   making  any  such  entry  shall communicate the  transfer of  ownership to  the transferor  and to the original registering  authority, if it is not the original registering authority.