UP Marks First: 25 Automobile Dealers Temporarily Lose Trade Licenses for One Month – ET Auto

Uttar Pradesh Transport Department Takes Action Against Automobile Dealers

In an unprecedented move, the Uttar Pradesh Transport Department has suspended the licenses of 25 automobile dealers across the state for a month, due to their ongoing non-compliance with vehicle registration protocols.

Details of the Suspension

A senior official from the transport department announced on a recent Friday that this disciplinary action marks the first time dealers have faced penalties for not adhering to vehicle registration rules. The department specified that these dealers, located in various districts such as Lucknow, Barabanki, Sitapur, Kushinagar, Moradabad, and Prayagraj, are prohibited from selling vehicles or submitting registration requests on the VAHAN portal during the suspension, which commenced on June 3.

Background of the Action

Following repeated warnings, the dealers received show-cause notices on April 21 and May 15 after a thorough review of pending vehicle registrations from January to May 2025. The transport department’s Office of the Transport Commissioner indicated that, despite being afforded ample opportunity to rectify their shortcomings, the dealers failed to respond or improve their registration submission performance adequately.

Department’s Commitment to Transparency

The transport department emphasized that these measures are part of a broader initiative to foster transparency and citizen-centered service delivery in vehicle registrations. According to a departmental statement, the action underscores the importance of compliance with Rule 39 of the Central Motor Vehicles Rules and the relevant aspects of the Uttar Pradesh Motor Vehicles Rules. The department aims to enhance accountability and discipline in the vehicle registration system.

Notable Dealers Affected

Included in the list of suspended dealers is Aarna Megacorp Pvt. Ltd., a notable dealership situated in Lucknow. This selection reflects the department’s determination to enforce compliance uniformly, without favoritism based on the dealer’s size or location. Other affected dealerships in Barabanki include Barabanki Auto Sales & Service, Bright 2 Wheel Sales, and Kalyan Motors.

Furthermore, several businesses from Sitapur, such as Narendra Automobiles, Agarwal Auto Sales, and M/s Budhram Auto, also faced suspension. Similar penalties were imposed on Gupta Automobiles and Gupta Auto Sales from Kushinagar, Badar Motors from Sambhal, and M/s Janta Trading Company from Pratapgarh.

Dealers from Maharajganj, namely Shubham Automobiles and Chandra Sales, along with Shakti Autos from Raebareli and M/s Auto Wheels from Jaunpur, were also cited as defaulters. Other suspended dealers include Bharat Auto Sales from Sant Kabir Nagar, Shyam Motors from Fatehpur, Shiva Auto Sales from Ghazipur, RN Motors from Rampur, and Shyam Motors from Auraiya. Additionally, Jai Auto Mobiles from Ambedkar Nagar, Cross Wheel Auto Pvt. Ltd. from Moradabad, and Uplife Solutions Pvt. Ltd. from Basti were also penalized.

The list concluded with Saraswati Motors from Prayagraj and Vishal Motors from Unnao being among the last on the suspension roster.

Next Steps for Non-compliant Dealers

In a parallel effort, the department has dispatched show-cause notices to an additional 50 dealers statewide, who are also facing high pending registration cases. These entities have been given a 14-day period to address their outstanding registrations or risk being subject to similar suspensions as seen with the initial group of 25 dealers. This move illustrates the department’s commitment to maintaining rigorous oversight of vehicle registration practices and ensuring that all dealers comply with established norms.

Concluding Thoughts

The actions taken by the Uttar Pradesh Transport Department serve as a significant warning to automobile dealers regarding the importance of compliance with vehicle registration laws. Not only does this initiative aim to improve accountability within the industry, but it also strives to ensure that the registration process is transparent and effective for all stakeholders involved. The suspension of these licenses, particularly the notable dealerships, illustrates the seriousness with which the department is handling compliance issues and sets a precedent for future enforcement actions.

As enforcement of these rules continues, dealers across the state will be closely monitored for compliance. This strategy not only seeks to streamline the vehicle registration process but also serves to protect the interests of consumers by ensuring that all transactions and registrations are conducted fairly and efficiently.