In a first in UP, 25 automobile dealers lose trade licenses for one month

Business Standard

06-06-2025

In a first-of-its-kind action, the Uttar Pradesh Transport Department has suspended the trade licenses of 25 automobile dealers across the state for a month, citing continued failure to comply with vehicle registration procedures.
A senior transport department official on Friday confirmed that this is the first time such disciplinary action has been taken against dealers for violating registration norms.
The suspended dealers, spread across districts including Lucknow, Barabanki, Sitapur, Kushinagar, Moradabad, and Prayagraj, have been barred from selling vehicles or uploading registration requests on the VAHAN portal during the suspension period that began on June 3.
After being repeatedly warned, the dealers were served show-cause notices on April 21 and May 15 this year after a detailed analysis of pending registrations from January to May 2025.
Despite being given adequate time, they failed to improve their performance or respond satisfactorily, the Office of the Transport Commissioner said in a statement.
The department asserted that these actions are part of an ongoing effort to ensure transparent and citizen-focused service delivery in vehicle registration.
"Persistent non-compliance with Rule 39 of the Central Motor Vehicles Rules (CMVR) and relevant provisions of the Uttar Pradesh Motor Vehicles Rules has led to this action, which is aimed at reinforcing accountability and discipline in the vehicle registration process," the statement read.
Among those penalised is a prominent dealership in Lucknow, Aarna Megacorp Pvt. Ltd., "highlighting the department's intent to enforce rules uniformly, irrespective of a dealer's location or scale." In Barabanki, the affected dealers are Barabanki Auto Sales & Service, Bright 2 Wheel Sales, and Kalyan Motors.
Sitapur-based dealers Narendra Automobiles, Agarwal Auto Sales, and M/s Budhram Auto have also been suspended.
From Kushinagar, similar action has been taken against Gupta Automobiles and Gupta Auto Sales.
In Sambhal, Badar Motors faced suspension, while in Pratapgarh, M/s Janta Trading Company was penalised.
Dealers from Maharajganj include Shubham Automobiles and Chandra Sales, while Shakti Autos from Raebareli and M/s Auto Wheels from Jaunpur were also among the defaulters.
In Sant Kabir Nagar, Bharat Auto Sales faced suspension, along with Shyam Motors in Fatehpur and Shiva Auto Sales in Ghazipur.
RN Motors in Rampur and Shyam Motors in Auraiya were also on the list.
Further, Jai Auto Mobiles in Ambedkar Nagar, Cross Wheel Auto Pvt. Ltd. in Moradabad, and Uplife Solutions Pvt. Ltd. in Basti were suspended.
Saraswati Motors in Prayagraj and Vishal Motors in Unnao were among the final names on the list.
In a parallel move, the department has also issued show cause notices to 50 other dealers across the state with high registration pendency.
These dealers have been given a 14-day deadline to clear pending files or face similar suspension.