Law Updates

Subject

Summary: The Ministry of Road Transport and Highways (MoRTH) has issued G.S.R. 728(E), dated 10 August 2026, proposing further amendments to the Central Motor Vehicles Rules, 1989. The draft was published in the Gazette of India Extraordinary No. 664 dated 13 August 2026. The CMVR draft amendment 2026 covers several separate areas of vehicle regulation. It proposes to extend trade-certificate eligibility to certain automotive component manufacturers, revise temporary-registration periods, digitise national permit authorisation, extend specified age limits for cleaner-fuel vehicles and update Forms 16, 20, 21, 34, 35, 46 and 48. These proposals are not final legal requirements at present. The draft says the rules will take effect only from the date on which the final rules are published in the Official Gazette. Businesses should therefore read the notification as a consultation proposal, not as an immediate compliance order. Notification at a Glance Particular Verified details Issuing authority Ministry of Road Transport and Highways, Government of India Document type Ministry of Road Transport and Highways, Government of India Notification number G.S.R. 728(E) File number RT-11036/57/2024-MVL Notification date 10 August 2026 Gazette details Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), No. 664 Gazette date 13 August 2026 Governing legislation Motor Vehicles Act, 1988 Rules proposed to be amended Central Motor Vehicles Rules, 1989 Main provisions affected Rules 33, 53B, 87 and 88 Forms affected Forms 16, 20, 21, 34, 35, 46 and 48 Consultation period 30 days from the date Gazette copies are made available to the public Proposed commencement Date of final publication in the Official Gazette Immediate compliance duty None created by this draft alone The notification was issued under powers cited from sections 39, 64, 88 and 211 of the Motor Vehicles Act, 1988. It was published for consultation under section 212(1) of the Act. Legal Status and Present Enforceability A draft placed in the Gazette allows affected persons to examine the proposal and send objections or suggestions before the Central Government decides whether to finalise it. The proposed provisions do not become binding merely because the draft has been published. Clause 1(2) states that the rules will come into force from the date of their final publication in the Official Gazette. A later final notification is therefore required before these amendments can operate as law. In the draft attached above, there is no compliance period. Only the period of public consultations has been mentioned as of now. Until a new amendment comes into effect, businesses must comply with the existing guidelines. Until this update dated 18 August 2026, no further final notification was identified from the official sources available. Any further final notifications can be obtained from the portals of MoRTH and e-Gazette. Public Consultation and Submission of Comments The Central Government will consider objections and suggestions received within the prescribed consultation period. Any person may submit comments on the proposed rules. The draft provides a period of 30 days from the date on which copies of the Gazette notification are made available to the public. It does not print a fixed calendar closing date. Stakeholders should confirm the date of public availability before calculating the last date for submission. No provision makes it mandatory to use any particular response format or even a set of accompanying documents. A good illustration should show the pertinent draft clause, state the issue at hand and then offer an alternate and supporting explanation. The Regulatory Framework The principal law which regulates the motor vehicles of India at the central level is known as the Motor Vehicles Act, 1988. This includes the aspects related to registration, permits, vehicle usage, transportation and powers of transport authorities. The Central Motor Vehicles Rules, 1989 include the provisions used for the implementation of the Act. The draft relies on section 39, specified clauses of section 64, section 88(14)(a) and section 211 of the Act. Section 39 contains the basic rule that a motor vehicle must not be driven in a public place or caused or allowed to be driven unless it is registered, subject to the Act's exceptions. Section 64 gives the Central Government rule-making powers concerning registration and related matters. Section 88 concerns permit validity and national or inter-State permit arrangements, while section 211 deals with fees. The notification follows the prior-publication procedure under section 212(1). This procedure allows the Government to publish proposed rules, receive feedback and then decide the wording of the final amendment. The principal Central Motor Vehicles Rules were originally published through G.S.R. 590(E) dated 2 June 1989. The draft notification's closing note leaves the reference to the latest amendment blank. This drafting gap is discussed later in this article. Scope and Applicability The proposals do not apply to one single class of business. Each amendment affects a different group. Stakeholder or activity Proposed coverage Main issue DSIR-approved automotive component manufacturers engaged in R&D Proposed inclusion under Rule 33 Main issue DSIR-approved automotive component manufacturers engaged in R&D Covered by proposed Rule 53B(2)(a) Six-month temporary registration and possible extensions Owners of specified fully built vehicles Covered by proposed Rule 53B(2)(b) Forty-five-day temporary registration Owners of specified fully built vehicles Covered by proposed Rule 53B(2)(b) Electronic applications, authorisation period, fees and form changes Battery-operated, hydrogen-fuel-based and natural-gas-driven vehicles Covered by proposed Rule 88(3A) Five-year extension of specified national-permit age limits Dealers seeking trade certificates Affected through proposed changes to Form 16 Dealership authorisation number and VAHAN auto-fetch Vehicle owners applying through Form 20 Affected Aadhaar-linked mobile number and finance details Financiers, owners and registering authorities Affected through Forms 20, 21, 34 and 35 Agreement or loan-account details and record references The draft does not create a blanket relaxation for all component manufacturers or all cleaner-fuel vehicles. Each benefit is tied to the conditions written in the proposed provision. What the CMVR Draft Amendment 2026 Proposes Trade certificates for eligible automotive component manufacturers The proposed amendment to Rule 33 would insert the words “or automotive component manufacturer” at three places. It would also add an explanation defining the type of component manufacturer covered. For this purpose, an automotive component manufacturer would need to satisfy both of the following conditions: It must be approved by the Department of Scientific and Industrial Research (DSIR). It must be involved in research and development for developing new products for the automotive industry. The definition does not encompass all spare parts suppliers and components dealers. The proposed definition only encompasses approved DSIR manufacturers who engage in the mentioned research and development activity. Practically speaking, the new definition is intended to ensure that eligible component manufacturers can be included in the Rule 33 trade certificates system. It could enable legal transfer and processing of motor vehicles related to the relevant R&D activity. Revised temporary-registration periods under Rule 53B The draft proposes to replace Rule 53B (2) and its provisos. It creates separate periods for an incomplete chassis and for specified fully built vehicles. Chassis without a body Temporary registration would remain valid for six months from the date of issue where a body has not been attached to the chassis. If the chassis remains in a workshop beyond six months for body building, or because of an unforeseen circumstance outside the owner's control, the registering authority may extend the original period. The proposed extension is not automatic. The owner would need to: Apply in Form 20B. Pay the appropriate fee specified in Rule 81. Satisfy the registering authority that an extension is justified. The authority may grant one or more extensions of 30 days each, as it considers appropriate. The draft does not state a numerical limit on the number of 30-day extensions. It leaves the decision to the registering authority. Specified fully built vehicles A 45-day temporary-registration period is proposed for a fully built motor vehicle that is: To be altered for conversion into an adapted vehicle or To be registered in a State other than the State where the dealer is located. This is a targeted provision. The draft does not state that every fully built vehicle will automatically receive 45 days under this clause. Exclusion from the proposed sub-rule The substituted provision would not apply to a temporary registration granted under the proviso to section 43 of the Motor Vehicles Act. That category is expressly kept outside the proposed Rule 53B(2). Electronic national permit authorisation and multi-year validity The draft proposes two important changes to Rule 87. First, an application under Rule 87(1) would be made electronically in Form 46. Either would accompany it: An electronic receipt showing payment of ₹1,000 per year or A bank draft for that amount. Second, authorisation would be granted electronically in Form 47. An applicant could choose a period of one year or more, subject to a maximum of five years at one time. The draft states that ₹16,500 must be paid for each year of the authorisation period. The amount is to be deposited in the national permit account for a permit allowing operation throughout India. The payable authorisation fee would depend on the number of years selected, calculated at the stated rate of ₹16,500 for each year. The draft separately retains the ₹1,000-per-year amount in proposed Rule 87(1). Applicants should not treat the two references as interchangeable. Final portal instructions and the wording of the notified rules will need to be checked before payment. The commercial benefit of a multi-year authorisation may be fewer annual renewal exercises. At the same time, businesses choosing a longer term would need to plan for a larger upfront payment and maintain the underlying vehicle and permit compliance throughout the selected period. Five-year age-limit extension for cleaner-fuel vehicles The draft proposes a new Rule 88(3A). It would extend the age limits specified in Rule 88(1), (2) and (3) by five years for: Battery-operated vehicles Hydrogen-fuel-based vehicles and Vehicles driven by any natural gas. Rule 88 deals with the age of motor vehicles for national-permit purposes. The proposal therefore concerns the specified national-permit age limits, not the general service life of every vehicle for every legal purpose. The attached draft does not define “any natural gas” in this provision. It also does not set out a separate application form for claiming the five-year extension. Operational treatment may depend on the final rule and the manner in which vehicle fuel details are recorded in VAHAN. For fleet operators, the proposal could allow eligible cleaner-fuel goods vehicles to remain within the national-permit age framework for five additional years. This is a likely effect of the draft, not a current entitlement until the amendment is finalised. Forms, Portals and Digital Process Changes The draft updates seven forms. The changes generally move towards portal-based data retrieval, clearer vehicle identification and more detailed finance or permit records. Form 16: Application for a trade certificate The first paragraph would identify the applicant as a holder of Form 16A and require the dealership authorisation certificate number. After that number is entered, information at serial numbers 1, 2, 2A and 4 would be automatically fetched from the VAHAN portal. The revised table would require: GST registration number PAN Udyam Aadhaar, where applicable and Corporate Identification Number, where applicable. Dealers would need to ensure that the information held across VAHAN, GST, PAN and corporate records is consistent. The draft does not explain the correction process if the auto-fetched information is outdated or incorrect. Form 20: Application for registration of a motor vehicle Serial number 5(A) would refer to the owner's Aadhaar-linked mobile number. The financing note would also include the agreement number or loan-account number where the vehicle is subject to hypothecation. In the final paragraph, the reference to Forms 23 and 24 would be replaced with a reference to Form 24 only. Form 21: Sale certificate Part IV would include the agreement number or loan-account number where the vehicle is held under a hire-purchase, lease or hypothecation arrangement. This may improve matching between the sale record, financing arrangement and registration application. Dealers and financiers may need to align their data-entry procedures if the change becomes final. Form 34: Entry of hire-purchase, lease or hypothecation agreement The last paragraph would refer only to Form 24 instead of Forms 23 and 24. Form 35: Termination of hire-purchase, lease or hypothecation agreement The first paragraph would add the agreement number or loan-account number. The closing reference would also change from Forms 23 and 24 to Form 24. Form 46: Application for authorisation of tourist or national permit The proposed Form 46 changes include: Adding the vehicle registration number before serial number 1. Auto-fetching available information from VAHAN after the registration number is entered. Allowing the applicant to provide information that is not available through VAHAN. Deleting existing serial number 12. Renumbering serial number 13 as serial number 12. Recognising electronic payment receipts in addition to bank drafts. Revising the national-permit fee declaration to show ₹16,500 for each year requested. Removing the words “or thumb impression” after “Signature.” The current official Form 46 available on the Parivahan portal contains a consolidated ₹16,500 national-permit fee reference and allows signature or thumb impression. The draft would align the form with the proposed annual fee calculation and electronic process. Form 48: Application for national permit The draft would add the vehicle registration number before serial number 1 and revise the information in serial numbers 5 and 6. The form would request details of: Valid registration certificate Valid insurance certificate Valid Pollution Under Control certificate Valid fitness certificate Pending challan history and Any national permit previously held for the vehicle. The wording at serial number 7 would clarify that the field concerns permits other than national permits. Serial numbers 8, 12 and 14 would be deleted. Existing serial numbers 9, 10, 11 and 13 would then become 8, 9, 10 and 11. As with Form 46, available information would be auto-fetched from VAHAN after the registration number is provided. The applicant would supply information not available through the portal. The words “or thumb impression” would be removed after “Signature.” Rule-and-Form Change Map Provision Proposed change Main affected group Practical meaning Rule 33 Add eligible automotive component manufacturers DSIR-approved component manufacturers involved in automotive R&D Possible access to trade-certificate framework Rule 53B(2) Replace temporary-registration validity rules Owners, body builders, dealers and registering authorities Six months for incomplete chassis 45 days for specified fully built vehicles Rule 87 Electronic application and authorisation up to five-year term National permit applicants and authorities Multi-year selection and annual fee calculation Rule 88(3A) Add five years to specified age limits Cleaner-fuel national-permit vehicles Longer proposed age eligibility under Rule 88 Form 16 Add dealership number and business identifiers Dealers VAHAN-based auto-fetch and additional identifiers Form 20 Aadhaar-linked mobile and loan/agreement details Vehicle owners and financiers More detailed registration and finance data Form 21 Aadhaar-linked mobile and loan/agreement details Dealers, buyers and financiers Better linkage of sale and finance records Forms 34 and 35 Update record references Form 35 adds loan/agreement number Owners, financiers and registering authorities Revised hypothecation records Form 46 Registration-number-based auto-fetch and annual fee declaration Tourist and national permit applicants More digital processing and revised payment statement Form 48 Auto-fetch of vehicle and compliance details National permit applicants Greater reliance on VAHAN data and pending-challan history Data Quality and VAHAN System Dependencies Several proposed changes depend on information being correctly recorded in VAHAN. Auto-fetching can reduce repeated manual entry, but it also makes source-data accuracy more important. Likely operational issues include: A mismatch between the registration certificate and VAHAN record An outdated mobile number Incorrect fuel classification Missing insurance, fitness or Pollution Under Control data Pending challans that have been paid but are not yet updated A difference between loan details held by the financier and the data entered in registration forms and Business identifiers that do not match dealership or company records. These are pragmatic threats and not problems identified through the notice. The draft does not mention how an applicant may contest or rectify an erroneous auto-fetched data field. The draft does not provide a plan B in case of any portal outage either, other than the fact that Forms 46 and 48 provide for submission of data which is not available via VAHAN. Fees, Validity and Extension Proposals Item Proposed amount or period Condition Temporary registration for chassis without body Proposed amount or period From date of issue Further extension for incomplete chassis 30 days per extension Form 20B, Rule 81 fee and registering-authority approval Temporary registration for specified fully built vehicle 45 days Adapted-vehicle conversion or registration in another State Rule 87(1) application payment reference ₹1,000 per year Electronic receipt or bank draft National permit authorisation under Rule 87(2) ₹16,500 per year One to five years selected by applicant Maximum authorisation period at one time 5 years Applicant may choose one year or more Maximum authorisation period at one time 5 years Eligible battery, hydrogen or natural-gas vehicle The draft does not specify an implementation cost for software updates, data correction, professional assistance or internal process changes. Impact on Businesses Automotive component manufacturers DSIR-approved component manufacturers carrying out automotive product R&D may gain a clearer route into the trade-certificate system. Eligible businesses should review whether their approval and R&D activity match the proposed definition. Other component businesses should not assume they are covered. Dealers and vehicle manufacturers Dealers may need to maintain accurate dealership authorisation, GST, PAN, Udyam and CIN information so that Form 16 can be processed through VAHAN. Sales and registration teams may also need to capture finance agreement numbers consistently across Forms 20 and 21. Body builders and owners of incomplete chassis The proposed six-month period gives a clear base validity for a chassis awaiting body construction. The extension mechanism may help where work takes longer, but approval remains discretionary and requires Form 20B and the applicable fee. Fleet operators and national permit holders Multi-year authorisation could reduce annual filing repetition. It would also require careful cash-flow planning because the ₹16,500 amount is calculated for every year selected. Fleet records, vehicle documents and challan data would need to remain accurate for Form 48 processing. Cleaner-fuel commercial fleets The proposed five-year extension under Rule 88 may support longer national-permit eligibility for qualifying battery, hydrogen and natural-gas vehicles. Operators should treat this as a proposed permit-age benefit, not a universal extension of vehicle life or fitness validity. Financiers Agreement or loan-account numbers would become more visible across registration and hypothecation records. Financiers may need to standardise the identifiers shared with dealers, borrowers and registering authorities. MSMEs Smaller dealers, body builders, transport operators and component manufacturers may benefit from clearer digital processing. They may also face short-term work in cleaning master data, training staff and adjusting internal forms or software. Benefits and Implementation Challenges Likely benefits Qualifying component manufacturers may receive clearer recognition for R&D-related trade-certificate needs. Temporary-registration periods would be differentiated according to the vehicle's actual condition and intended next step. Multi-year authorisation may reduce repeated annual applications. VAHAN auto-fetch could reduce duplicate data entry. Loan-account and agreement references may improve consistency in financed-vehicle records. Cleaner-fuel national-permit vehicles may receive a longer age window. Likely challenges Businesses may need to correct inconsistent VAHAN and internal records. Multi-year permit authorisation may increase upfront payment requirements. The draft does not explain correction and appeal procedures for auto-fetched data. Removing the thumb-impression option may raise an accessibility question for applicants who cannot sign. State-level system and workflow changes may be required before the proposed digital process works consistently. Stakeholders need clarity on the treatment of terms and drafting gaps identified in the notification. Drafting Gaps and Matters Requiring Clarification The notification contains several points that may benefit from correction or clarification before final publication. Blank amendment title Clause 1 names the proposed rules as the Central Motor Vehicles “(…………… Amendment) Rules, 2026.” The amendment number is left blank. Incomplete latest-amendment reference The closing note says the principal rules were last amended through a G.S.R. number and date, but both fields are blank. This makes it difficult to identify the precise consolidated baseline used for the draft. Missing sub-clause number in the Form 46 amendment Clause 11 moves from sub-clause (iv) to sub-clause (vi). There is no sub-clause (v) in the English or Hindi text supplied. This appears to be a numbering gap. Duplicate letter in the English Form 48 list Under proposed Form 48, serial number 5 labels both “Valid fitness certificate” and “Pending challan history” as item “d.” The Hindi version uses separate fourth and fifth letters. The English list may therefore require correction. Use of “Udyam Aadhaar” in Form 16 The draft uses “Udyam Aadhaar (if applicable).” Businesses may need clarity on whether this is intended to refer to a legacy Udyog Aadhaar number, the present Udyam Registration number or another identifier. Auto-fetch correction and system-failure process The draft allows applicants to enter information when it is not available through VAHAN, but it does not expressly explain what happens when information is available and incorrect. It also does not set out a process for portal failure, data disputes or delayed updates from connected systems. Removal of thumb-impression option Forms 46 and 48 would remove the words “or thumb impression.” The draft does not explain the alternative authentication arrangement for an applicant who is unable to sign. These points do not invalidate the draft by themselves. They are suitable subjects for stakeholder comments because they may affect interpretation or implementation. What Businesses Should Do Next? Because the notification is still a draft, businesses do not need to implement the proposed provisions as final law. They should, however, use the consultation period to prepare and provide evidence-based feedback. Check whether the proposal affects the business. Review the relevant rule or form instead of relying on a general summary. Confirm the current procedure. Continue following the rules and portal instructions presently in force until a final amendment commences. Review master data. Compare VAHAN information with registration certificates, permit records, insurance, fitness, Pollution Under Control, dealership and finance records. Assess operational effects. Estimate the impact of multi-year payments, temporary-registration periods, form changes and system updates. Prepare comments where necessary. Cite the exact clause and suggest practical wording or safeguards. Track final publication. The final rules may accept, reject or modify parts of the draft. Update procedures only after confirmation. Revise internal checklists, dealer systems, finance documents and permit workflows once the final wording and commencement date are known. How Corpseed Can Help The proposals touch different parts of the motor vehicle regulatory system. A business may need support only for the clause relevant to its operations. Corpseed's motor vehicle regulatory compliance services can assist stakeholders in understanding the draft and preparing for the final framework. Corpseed can support businesses with: Applicability assessment for dealers, component manufacturers, body builders and fleet operators Clause-by-clause interpretation of the proposed CMVR changes Review of trade-certificate eligibility for qualifying automotive component manufacturers Temporary-registration and vehicle-registration process guidance National permit documentation and authorisation support Review of VAHAN, company, dealership and vehicle-record consistency Compliance gap assessment for revised Forms 16, 20, 21, 34, 35, 46 and 48 Preparation and review of reasoned stakeholder representations and Monitoring of the final notification and assistance with process updates after commencement. Professional support cannot guarantee that the Government will accept a consultation comment or approve an application. It can help a business identify the correct provision, organise its records and avoid acting on an incorrect reading of a draft. Automotive businesses affected by G.S.R. 728(E) may contact Corpseed for document-specific motor vehicle regulatory compliance services and assistance in preparing for the final rules. Key Takeaways The CMVR draft amendment 2026 proposes a broad set of registration, permit and form changes. It is a consultation document and does not itself make the proposals legally binding. G.S.R. 728(E) is dated 10 August 2026 and appears in Gazette No. 664 dated 13 August 2026. The draft proposes trade-certificate access for a defined group of DSIR-approved automotive component manufacturers engaged in R&D. It proposes six months of temporary registration for an incomplete chassis and 45 days for specified fully built vehicles. National permit authorisation may be issued electronically for up to five years, with ₹16,500 payable for each year selected. Specified Rule 88 age limits may be extended by five years for battery, hydrogen and natural-gas vehicles. Several forms would rely more heavily on registration-number-based VAHAN auto-fetching. Comments may be submitted within 30 days from the date Gazette copies are made available to the public. Businesses should monitor the final notification before changing compliance procedures.