A motorcycle dealer in Lahore’s Gadhi Shahu area is facing an unprecedented financial and legal crisis after being issued traffic fines totaling over PKR 2.3 million. The staggering sum is the result of 2,071 individual traffic violations committed by the riders of approximately 500 motorcycles he sold on installment plans. The core of the problem lies in a critical administrative failure: the buyers never formally transferred the ownership of the vehicles into their own names. Under Pakistan’s Motor Vehicles Ordinance, the registered owner still the shopkeeper bears full legal responsibility for all fines and liabilities associated with the vehicle, regardless of who is actually driving it.
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This case exposes a dangerous gap common in informal installment sales. The shopkeeper, acting in good faith, released the motorcycles to buyers who agreed to pay in increments. However, without the crucial step of officially transferring the registration at the Excise and Taxation Department, the shopkeeper retained all legal liability. The buyers, now in possession of the bikes, incurred violations captured by Lahore’s Safe City cameras, and the automated system correctly issued penalties to the name on the registration documents. The situation leaves the shopkeeper financially vulnerable to penalties he did not directly cause, while the buyers risk having their motorcycles repossessed if the seller chooses to reclaim them to settle the debt.
The consequences for the shopkeeper are severe and escalating. Unpaid fines can lead to a block on his Computerized National Identity Card (CNIC), crippling his ability to conduct financial transactions, obtain passports, or use other government services. It may also result in legal proceedings and arrest warrants. For the public, this serves as a critical warning. Sellers must ensure ownership is transferred immediately upon sale, using a proper sale certificate and following official procedures. Buyers must insist on this transfer to protect themselves from the seller’s potential debts and to secure their own legal right to the vehicle. This massive fine is a costly lesson in the non-negotiable importance of formalizing legal ownership.
❓ Frequently Asked Questions
1. Why is the shopkeeper responsible for fines from bikes he sold?
Under Pakistani law, the registered owner listed with the Excise Department is solely liable for all traffic violations. Since the bikes were never transferred to the buyers’ names, the shopkeeper remains the legal owner and is therefore responsible.
2. What can the shopkeeper do to resolve this?
His immediate options are to: 1) Urge all buyers to immediately transfer ownership, 2) Repossess motorcycles from uncooperative buyers to stop further fines, and 3) Pay the fines to avoid CNIC blockage while seeking reimbursement from buyers, which is legally complex.
3. What should a buyer on an installment plan always do?
A buyer must insist on transferring the vehicle registration to their name immediately after the sale agreement. A simple “sale letter” is not enough. Complete the official transfer at the Excise Office to assume legal ownership and liability.
4. What happens if the fines remain unpaid?
The authorities will likely block the shopkeeper’s CNIC, restricting travel, banking, and access to services. He could also face court cases, arrest warrants, and seizure of assets to recover the debt.
