Is it legal to rent a whiteboard car to others for self drive in India


Hi, We are planning to build a platform to enable peer to peer car sharing service where car owners can rent their private(white board) cars to others for self drive. Before proceeding anything further I want to know if it is legal to rent whaite board cars for self drive in India so that we can proceed with other formalities.

Answers (1)


260 votes

There are no specific laws dealing with this issue as of now. Of course, what is key is that such rental cannot be for "hire or reward" because that under the Motor Vehicles Act can imply commercially using the vehicle, which is highly regulated. Plus, aspects such as possession of original RC, insurance claim if the car is leased to a third party, etc. have to be evaluated. There are existing companies like that do corporate leasing for new cars where you pay a rent for 3 years or so and then have the option to buy the car. However, the RC acknowledges the dealership/car company as the owner. One will have to draw some inferences from this business model and try and adapt in the used private car industry.


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