Selling Your Car? Here’s What Happens If You Forget to Deregister FASTag

There is a certain thrill involved when you are selling your car new possibilities, better options, maybe even the exciting transition to a dream car. Yet, when all the paperwork, negotiations, and inspections are not enough to keep you busy, there is one very minor detail that most owners overlook deregistering your FASTag.

What may seem like a minor detail can cause unnecessary toll fees, potential fines, and disagreements with the buyer of your car. Let’s dig into it and save you from the stress.

What is FASTag and Why Deregistration Matters?

FASTag is a prepaid tag that automatically deducts tolls from your linked bank account when you drive through a toll plaza and carries no part of the remaining balance. When you sell the car, unless you take action to de-register or transfer the tag, the FASTag remains active under your name and account, which means:

• You, the seller, could incur toll charges for the new owner,
• You could have a transaction failure or chargeback,
• NHAI may reference and determine the FASTag is still active to the old vehicle you sold, creating potential legal or financial confusion,

In summary, an active FASTag can become a long-term nuisance without proper transfer or deregistration.

Common Scenarios If You Forget to Deregister

1. Tolls Fees Will Still be Deducted from Your Account

The most pressing issue at hand is that the toll charges racked up by the vehicle’s purchaser will continue to deduct from your linked bank account or wallet. Even if your balance is low or below the amount to cover the toll, your overdue bill can incur a fine.   

2. New Owner Penalties  

What happens if the new owner receives a penalty notice for committing a toll road infraction or using the FASTag incorrectly? Because the tag is registered to you, you will potentially receive calls, dispatch notices and possibly legal notices which no one wants.   

3. Deactivation of the Tag May be More Complicated  

While deactivation of the FASTag is relatively easy, it may become complicated after the sale transaction. The bank, or FASTag issuer, may require the new purchaser produce documents of sale and transfer to finalize the deactivation, adding additional process.

How to Properly Deregister or Transfer FASTag

Follow this simple process to prevent problems:

Step 1: Assemble Required Documents

• Vehicle Registration Certificate (RC)
• Proof of sale (Form 28/29 or sale agreement)
• A bank account linked to the FASTag (if applicable)

Step 2: Reach out to the Issuer of your FASTag

If you bought your FASTag from a bank, or another provider, please reach out to your provider through app, website or helpline to request deactivation of the FASTag or transfer the FASTag to the new owner.

Step 3: Verify Closure or Transfer

Once you have requested deactivation or transfer, make sure to verify the FASTag has been either deactivated or transferred. Always request because this will eliminate future disputes with no confirmation of this transfer or deactivation via email or SMS.

Step 4: Refund Your Balance (optional)

In the event, you have a positive wallet balance on the FASTag, request a refund to your linked bank account. Most providers will process refunds within 7 to 10 business days.

What Happens If the Buyer Uses Your FASTag by Mistake?

Occasionally, a buyer will inadvertently keep using the FASTag affixed to the car. In that case:

1. Toll charges will continue to deduct from your account until the FASTag is transferred.
2. Disputes may arise if the new owner violates the rules or enters the incorrect lane.
3. Reimbursements can take time to complete, so something you can do right away is unregister.

This is why it’s important to communicate with the buyer and ensure they can transfer or deactivate the FASTag immediately.

FASTag Deactivation Mistakes to Avoid

There are several common mistakes that can cause a delay even after requesting deactivation:

• Failure to provide proper proof of sale or RC copy.
• Assuming deactivation happens automatically after selling the car.
• Not confirming deactivation with the FASTag issuer.

For your own peace of mind, please “Check and Keep” some sort of screen shot or e-mail. That way, this one simple step can prevent confusion and disputes as well as toll charges in the future.

Tips for Smooth Car Selling with FASTag

1. Complete this process before handing over the keys; don’t wait until the buyer asks.
2. Check with the new owner if they plan to use the fastag — some buyers like to get a new tag.
3. Be sure to retain transaction records as a matter of safety and for legal backup.
4. Explain FASTag rules to the buyers, and how money can be transferred; it builds trust and will avoid misunderstandings.

Key Takeaways

• Neglecting to deregister your FASTag means you will pay some money and create a legal issue.
• Always transfer or deregister FASTag right after you sell
• Hang onto proofs and confirmations so you can avoid disputing with the bank, NHAI, or the new owner.
• A little time spent now, can save you months of headaches later

Selling your car should be a joyous occasion for you, not a stressful experience. If you handle the FASTag properly, you’ll make it an easy, safe experience for yourself and your buyer.