Section 55(5) of the Motor Vehicles Act – Cancellation of Imported Car Registration Certificate

In the basis of NOC dated 28.2.2020 of the State Transport Department of Manipur, the RTO Mumbai registered the Car in the name of Meenarani Devi.

The petitioner had purchased the said car and it was registered in his name on transfer notice of ownership.

However, the said car was seized in August, 2021, by the Director of Revenue Intelligence that the said car was fraudulently imported in the name of a diplomatic officer and exemption of custos duty.  However, the car was released pursuant to the orders of Settlement Commission on payment of penalty of Rs.5 lakhs

By the Order dated 27.3.2025, the registration was cancelled on the ground that it was done on the basis of a bogus bill of entry.

HELD that the petitioner paid for the illegal acts of the vendor.   Prima facie, the petitioner was not involved in the illegal import of the vehicle.   The authority under MV Act, therefore, ought to have taken into account the order passed by the Settlement Commission. The registration was cancelled on the ground that the initial registration was obtained by making false misrepresentation and forged documents.  Section 42(2) provides that if the car ceases to be the property of the diplomatic officer, the registration certificate also cease to be effect and the provisions of sections 39 and 40 will apply.  Thus, the vehicle is to be registered in the ordinary manner.

Judgment dated 2.12.2025 of the High Court of Bombay in Writ Petition No.12921 of 2025 of Imran Humayun Chandiwala  Vs.  The State of Maharashtra and others