Is self-drive car rental by private owners legal under Indian law?

There is various apps like Zoom Car and Revv which provide self drive car rental service. People can register their private cars (even white plate number) on their platform as host and guest will book their car for their personal use. Guest will pay to zoom on hour basis. Zoom Car will get their 40% platform commission fee. My question - is this type of rental service legal in India where private car owner can earn from their car? If not then how these platforms are running their business? Because if car met an accident and police case happen then police can ask that this is not a yellow plate number and you can not do business by giving it on rent. What our motor vehicle act says for it Hope you understand my question and looking forward to get appropriate reply.

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Advocate By LEAD INDIA Answered: 04 Dec 2024

Sir, under the Motor Vehicles Act, vehicles must have a commercial license (yellow plate) to be used for commercial purposes, such as renting and Private vehicles (white plate) cannot legally operate as commercial vehicles without the necessary permits. For further legal assistance contact us on our helpline number.

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