Page 464 - The Central Motor Vehicles Rules, 1989

436 THE CENTRAL MOTOR VEHICLES RULES, 1989 RULE 177

176. Eligibility
176
(1) The owner or operator, as the case may be, of an automated testing station shall
be the State Government or any company or association or body of individuals or
individual or special purpose vehicle either directly or through public-private
partnership:
PROVIDED that a vehicle manufacturer or service station or automobile dealer or
any person related to repair of vehicle or manufacturing or sale of vehicle or automobile
1
spares [or scrapping of vehicles] shall not become the owner or operator of an
automated testing station directly:
PROVIDED FURTHER that, where, a vehicle manufacturer or service station or
automobile dealer or any person related to repair of vehicle or manufacturing or sale of
1
vehicle or automobile spares [or scrapping of vehicle] intends to become the owner or
operator of an automated testing station, it may do so, by forming a subsidiary or joint
venture or a special purpose vehicle.
(2) Notwithstanding anything contained in sub-rule (1), the owner of an automated
testing station may also be the operator of such automated testing station.
(3) The owner or operator of an automated testing station shall possess,—
(i) certificate of Incorporation or Shop Act registration or Udyam Aadhaar;
(ii) valid Goods and Service Tax certificate; and
(iii) valid Permanent Account Number.
(4) The owner or operator of an automated testing station shall have a minimum
2
net worth of three crore rupees during the last financial year [xxx].
3
[(5) If the owner or operator of an automated testing station is a government body
then the application fee for grant of Preliminary Registration Certificate, Registration
Certificate and security deposit or bank guarantee for registration certificate shall not
be applicable and such entities shall also be exempt from meeting financial criterion
specified in sub-rule (4) of rule 176, sub-rule (4).]
177. Conflict of Interest
4
[(1) There shall be no conflict of interest during the course of operations that may
177
arise or may be perceived to influence or compromise the professional conduct of the
owner or operator of an automated testing station.]
Explanation : For the purposes of this rule, financial or professional interest means
any personal, financial, or other considerations that may have the potential to influence
or compromise the professional behaviour of the owner or operator of an automated
testing station.
(2) The automated testing station shall act as test-only facility and shall not provide
any services related to repair of vehicles or manufacturing or sale of vehicles or
automobile spares.

1 Inserted vide GSR 797(E), dt. 31-10-2022, w.e.f. 1-11-2022.
2 Words “and should have a positive profit after tax in the last two financial years” omitted, ibid.
3 Substituted, ibid. Prior to substitution, sub-rule (5) read as under:
“(5) The premises where the automated testing station is to be housed shall either be owned or taken on
lease or hired by the owner for a period not less than ten years.”
4 Substituted, ibid. Prior to substitution, sub-rule (1) read as under:
“(1) There shall be no conflict of interest during the course of operations that may arise or may be perceived
due to financial or professional interest of the owner or operator of an automated testing station and their
obligations under this chapter.”