Is lending vehicles to friends and relatives punishable under MVD rules?
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The Kerala Motor Vehicle Department (MVD) circular regarding lending one's vehicle to friends and relatives, in the context of the accident and death of five medical students in Alappuzha, has created confusion among people.
Following the incident, a statement by a Motor Vehicle Department (MVD) official highlighted that renting private vehicles for money or compensation is illegal, sparking debate on the law’s implications for vehicle-sharing practices. The confusion intensified after media reports suggested a financial transaction between the car owner and the students.
MVD clarifies regulations
In response to the controversy, the Kerala MVD released a video on December 24 via its official Facebook page, clarifying the rules governing the use of private vehicles. According to the MVD, lending vehicles to family members or friends for emergency purposes, without any form of compensation, is legal. However, renting private vehicles for money or other forms of benefit is a punishable offence under the Motor Vehicle Act, 1988.
Section 55 of the Act empowers the MVD to cancel the registration of private vehicles found engaging in such practices. Furthermore, vehicles with eight or more seats have stricter usage restrictions.
As per Dilu AK, Regional Transport Officer (RTO) of Alappuzha, the Kerala MVD requires owners of such vehicles to provide affidavits confirming their use is limited to immediate family members. This rule has been in effect since a directive from the public transport commissioner in 2000.
Legal requirements for renting vehicles
The MVD also emphasised that private vehicles cannot be used as rental cars without adhering to specific legal provisions. Renting vehicles for compensation requires compliance with the ‘rent-a-cab’ scheme of 1989 or the ‘rent-a-motorcycle’ scheme of 1997.
For cars to be legally rented, owners or companies must hold an All India Permit (AIP), operate at least 50 vehicles, and provide related facilities. For motorcycles, a minimum of five vehicles must be registered as transport vehicles, with their registration numbers displayed on black backgrounds with yellow lettering. Additionally, such vehicles must possess fitness certificates, permits, and insurance covering customer protection.
The MVD warned against practices such as regularly dropping off people at airports, railway stations, or tourist destinations using private vehicles and advertising rental services on media platforms. Violators risk severe penalties, including vehicle deregistration.