Bengaluru-based entrepreneur Ramakrishnan Laxman never imagined that selling his beloved red Honda City would come back to haunt him two years after bidding it a teary farewell. But today, he finds himself summoned to the Mumbai Lok Adalat over a traffic challan for a car he hasn`t driven in years, and which he believed was no longer his responsibility.
“I bought that car before my daughter was born,” Laxman recalled, the warmth in his voice still evident despite the circumstances. “She grew up calling it her red car. It wasn’t just a machine to us. It was part of the family.”
Back in 2019, Laxman had purchased the Honda City in Mumbai — one of the last low-floor models before they were discontinued. When the government tightened regulations around ageing vehicles and with his move from Mumbai to Bengaluru, Laxman decided to let go of the car in January 2023. “It was heartbreaking,” he said. “But I knew it was time.”
He sold the car to a well-known used car division of Shaman Motors, which offered a signed agreement promising that all liabilities — from accidents to fines — would now fall under their name. At the time, it seemed like the end of the story.
A phone call
Fast forward to September 2024. A stranger from Ahmedabad called Laxman, claiming he had the car — but no documents. “I was shocked. He said he found my number on some old service papers left in the boot,” Laxman recounted. “He had paid for the car, but the dealer refused to hand over the registration certificate (RC). Worse, the car was still registered in my name.”
Alarmed, Laxman checked the Parivahan website and found — to his horror — the vehicle was indeed still listed under him. The car, now over 15 years old, hadn’t undergone mandatory RTO “Passing,” and without that, no transfer of ownership was possible.
Despite repeated follow-ups with Shaman Motors and its representative, a man named Madhukar, there was no resolution. The dealership claimed the car was handed over to another agent — who had since gone incommunicado. Efforts to escalate the matter to the CEO of the company, Kiran Sheth, yielded polite assurances — but no action.
System strikes back
Then came the dreaded text. On July 8, 2025, Laxman received a message from the Maharashtra Traffic Police — a challan of R2000 in his name for speeding. “That was the final straw. I hadn’t even seen the car in two years,” he said.
Still, he followed the law. He mailed Form 29 and the sale documents to the RTO. He lodged a police complaint online, hoping to formally disassociate himself from the vehicle. But the bureaucracy can be deaf when it chooses.
On August 8, 2025, a notice from the Mumbai Lok Adalat arrived, asking him to appear in person and settle the fine — or face further consequences.
“I’ve done everything I could — filed complaints, reached out to the company, mailed documents. What more is expected from a law-abiding citizen?” asked Laxman.
Not an isolated case
This isn’t the first such case either. As earlier reported by mid-day on March 15, Shanti Chheda, a 57-year-old businessman, received a notice from the District Legal Services Authority, Thane, asking him to appear at the Lok Adalat for two traffic violations. The notice, dated February 27, 2025, scheduled the hearing for March 22.
What can be done?
Laxman hopes his ordeal serves as a warning. “If you’re selling your car, don’t just rely on a dealership — no matter how big. Ensure the transfer is completed at the RTO, and follow up until it’s confirmed. Otherwise, your past can literally drive back into your life.”
He also called for systemic reform. “There needs to be a clear, enforceable timeline for ownership transfers. Dealerships must be held accountable. And the state should ensure digital systems don’t just exist — but actually work.”
On the eve of his Lok Adalat hearing, Laxman was calm but disappointed. “All I want is closure. I don’t want to go to court for a car I sold years ago.
It’s absurd.”
Other side
Kiran Sheth, CEO, Shaman Group, said, “We have extended all cooperation to Laxman and have even got the RTO documentation work done at our end.”
Asked the reason for Laxman then receiving the challan and RTO records, still having his name featured as the owner of the said vehicle, Sheth said, “I do not handle day-to-day affairs of the company; second-hand car dealing is handled by one of our divisions. I will ask my manager, Madhukar Khandesh, to call you back.”
Khandeshi, operations manager at Shaman Group’s pre-owned car division, said: “The vehicle, a 2009 model, was over 15 years old. Though sold to us in 2023, it took time to find a buyer. By then, the vehicle’s passing had expired, so we renewed it at the Tardeo RTO after the Ahmedabad-based buyer paid the road and other taxes.
As per procedure, the seller surrendered the RC, and the RTO issued a new one to his Mumbai address. However, the seller claims it was misplaced by his tenant. A duplicate RC is now needed, and the seller [presently in Bengaluru] must be physically present at the RTO to complete the transfer. Until then, the vehicle remains in the previous owner’s [seller] name, which can lead to such issues. We take full responsibility and are working with the buyer to resolve the Lok Adalat and challan matters. Shaman Group has been in the used car business for over three decades, and we stand by our commitment to accountability and transparency.”
Asked to comment on Khandeshi’s claims, Laxman said, “To their statement that the newly issued RC was lost by the tenant, that is their claim. I no longer reside at that address in Mumbai.”
Who’s responsible?
Vivek Bhimanwar, commissioner, RTO, Maharashtra, said, “It is the joint responsibility of both the buyer and seller to ensure that all mandatory documents are in order and that the ownership transfer is properly reflected on the Vahan portal. In most cases, the seller is focused solely on completing the sale and is of the view that his responsibility is over. However, even something seemingly minor, like an unpaid traffic challan, can lead to complications later. Imagine the consequences if the vehicle had been involved in a serious criminal offence, used in illegal activities. The process for vehicle transfer is very transparent and simple, which can be done online with Aadhaar authentication.”
Expert speaks
Nitin Dosa, executive chairman, Western India Automobiles, said, “This is the new trend going on for last several year, whether seller sells or exchange his car with a dealer or reseller who does not transfer the vehicle in his name and waits for the buyer for may be many months, as he does not want their name to appear in the RC book because of various difficulties in GST and other taxes, but if he does any offence or violation, it will be the original owner responsible.”
2019
Year Laxman purchased car
