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I purchased a new car. The booking, GST tax invoice, and RTO registration (BH Series) were all legally done in my wife’s name. However, the bank negligently disbursed the loan in my name without making my wife a co-applicant. To correct their audit error, the dealership and bank are now proposing to retroactively cancel my wife’s GST invoice, issue a new primary invoice in my name, and process an RTO “name correction” so that the RC shows me as the first owner. They are asking for my KYC and Form 60 for this process. Is it legally safe for me to agree to this retroactive invoice cancellation and RTO alteration, or could it expose me to future insurance, tax, or legal liabilities? Should I instead send a legal notice to the bank demanding correction of the loan records?
You should not agree to retroactive cancellation of GST invoice or RC change. This can create future problems related to tax liability, insurance claim rejection, and ownership disputes. Legally, the correct remedy is to issue a legal notice to the bank and dealership asking them to correct the loan documentation internally, since invoice and registration already show your wife as owner. Any backdated change may be treated as manipulation of official records, so it should be avoided. For further legal assistance contact us on our helpline number.