Excelsior Correspondent
JAMMU, Nov 16: In the aftermath of Delhi explosion, the Federation of Automobile Dealers Associations (FADA) Jammu has once again urged the Jammu and Kashmir Government to frame stringent regulations for the used car business in the Union Territory, highlighting large-scale unauthorised operations and significant loss of revenue to the exchequer.
The concerns were conveyed through a formal representation submitted by Sanjay Aggarwal, Chairperson, FADA Jammu, to the Chief Minister Omar Abdullah.
Referring to their earlier meeting held on July 17, 2025, Aggarwal stated that the sale and purchase of used cars in J&K has grown to nearly 1.5 times the size of the new car market. However, he added, despite such large volume, the sector continues to remain largely unregulated, with the business being dominated by unauthorised brokers and car bazaar operators who are operating without mandatory Trade Certificates.
Aggarwal stressed that these unregistered brokers are not only violating the law but also causing a substantial loss of GST revenue to the Union Territory. He pointed out that as per the Ministry of Road Transport and Highways (MoRTH) notification, no individual is permitted to deal in registered motor vehicles without an authorization certificate issued in Form 29B by the registering authority of the jurisdiction in which the business is being carried out.
In the letter, FADA has requested the Chief Minister to initiate necessary measures to regulate used car business in J&K and ensure that only authorized and certified dealers engage in the sale and purchase of used cars in the UT. The Association has appealed for strict enforcement of the requirement of valid Trade Certificates for anyone conducting business in this sector, asserting that such a step would not only streamline the market but also generate additional revenue for the UT.
FADA further suggested that the Government mandate used car business exclusively through authorized dealers registered with the Transport Department and the GST authorities.
Forwarding the representation to Satish Sharma, Transport Minister; Avny Lavasa, Secretary Transport; and Vishesh Mahajan, Transport Commissioner, Aggarwal expressed hope that the Government would respond positively.
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