Srinagar, Oct 10: A delegation of the Federation of Automobile Dealers Associations (FADA), Jammu and Kashmir, led by its chairperson Sanjay Aggarwal, met Transport Minister Satish Sharma to discuss issues affecting the ease of doing business in the automobile sector across the Union Territory.
The delegation highlighted procedural difficulties faced by automobile dealerships in obtaining Trade Certificates and called for simplified documentation, uniform implementation of rules and a transparent, time-bound compliance mechanism.
During the meeting, Aggarwal said the automobile sector had emerged as an important pillar of Jammu and Kashmir’s economy, generating employment for around 20,000 people while contributing to government revenue, consumer services and the growth of the automotive ecosystem.
He said further improvements in the Ease of Doing Business (EoDB) framework were essential to unlock the sector’s potential and encourage fresh investment in the Union Territory.
Raising concerns over the Trade Certificate application process, Aggarwal said automobile dealers in J&K were currently required to submit approximately 16 documents to obtain the certificate. He pointed out that the extensive documentation requirements were creating difficulties for dealers and delaying the completion of applications.
He also referred to the three-month, one-time relaxation recently provided by the government to eligible automobile dealers who had already initiated the statutory process for obtaining Trade Certificates. However, he said the existing documentation requirements continued to pose significant challenges despite the temporary facilitation.
Aggarwal further highlighted the recent closure of some automobile dealerships in J&K, citing the cumbersome documentation process for obtaining Trade Certificates. He stressed the need to rationalise the requirements to ensure that regulatory compliance did not become an unnecessary obstacle to business operations.
Referring to the Central Motor Vehicles Rules (CMVR), the FADA chairperson said the documentation requirements prescribed under the applicable rules were considerably fewer than those currently required in Jammu and Kashmir. He urged the government to review the process in line with the relevant provisions of the CMVR.
Drawing a comparison with neighbouring Punjab, Aggarwal said the documentation requirement there was understood to be around six documents. He maintained that reducing unnecessary procedural requirements would make compliance easier without compromising statutory obligations.
The delegation also called for the implementation of the ‘One UT, One Trade Certificate’ system in Jammu and Kashmir. Aggarwal said dealerships operating across multiple districts were currently required to obtain separate Trade Certificates for different districts, increasing the compliance burden and restricting operational flexibility.
He proposed that a single Trade Certificate should enable a dealer to conduct business anywhere in the Union Territory, describing the arrangement as consistent with the principles of Ease of Doing Business. He cited the GST registration framework, under which branches can be endorsed, as a model for consideration.
Aggarwal requested the Transport Minister to issue suitable directions to the concerned authorities for simplifying and rationalising Trade Certificate applications across J&K in accordance with the applicable CMVR provisions. He said such measures would support the government’s objectives of improving the business environment, transparency and digital governance.
Transport Minister Satish Sharma gave a patient hearing to the delegation, appreciated the concerns and suggestions put forward by FADA J&K, and assured the members that the issues discussed would be addressed on priority.
