A man in Rohini sells his old car to a neighbour’s cousin for cash, hands over the keys and a signed form, and forgets about it. Eight months later he receives a notice from an accident claims tribunal: the car hit a scooter in Ghaziabad, and he is still its registered owner. A woman inherits her late father’s scooter and cannot sell it because nobody knows which form to use. A buyer pays in full for a car that turns out to be hypothecated to a bank. Transferring a vehicle is a routine process, done online more and more, and the law behind it is strict about one thing: until the record changes, the old owner is still the owner.
Selling a vehicle involves two separate things that people tend to treat as one. The first is the sale itself: the buyer pays, the seller hands over the keys and the papers, and the buyer drives away. Under ordinary contract and sale-of-goods law, ownership of the vehicle as property passes then. The second is the change in the official record: the registering authority — the transport department office, commonly called the RTO or, in Delhi, the zonal office of the Transport Department — enters the buyer’s name as the registered owner. That is what “transfer of ownership” means in the Motor Vehicles Act.
The gap between the two is where trouble lives. The buyer has the car; the record still shows the seller. Traffic cameras send challans to the name on the record. Insurers, police and accident claims tribunals look to the record. A buyer who sells on again without ever transferring the car to himself leaves a chain of owners the record never saw.
The Motor Vehicles Act, 1988 and the Central Motor Vehicles Rules, 1989 set out the procedure, and each State adds its own rules on fees, tax and practice. Since the move to the national Vahan database, most transfers are started online through the Parivahan portal, with documents uploaded and, for many services, identity verified through Aadhaar, so that a visit to the office is often unnecessary. The legal steps are unchanged.
This page covers the ordinary sale of a private vehicle, and the variations people actually meet: loans, insurance, challans, moving to another State, inheritance, company and commercial vehicles, and what to do when one side does not cooperate. The no objection certificate on Form 28, which is needed when a vehicle crosses to another authority, is explained in our NOC guide; this page refers to it rather than repeating it.
The Motor Vehicles Act defines “owner” by reference to the register, not to who paid or who holds the keys:
In Naveen Kumar v. Vijay Kumar, decided in 2018, the Supreme Court applied that definition to an accident claim. The vehicle had been sold, but the transfer had not been recorded. The Court held that the person in whose name the vehicle stood registered remained its owner for the purposes of the Act, and was liable to compensate the victims of the accident, together with the insurer, even though he had parted with the vehicle.
The reasoning is practical. Someone injured by a vehicle has no way of knowing about private sales; the register is what the law gives him to identify who is responsible. A seller who has not completed the transfer may have a claim against the buyer for whatever he has to pay, but the injured person does not have to chase that chain.
The same logic runs through daily life. E-challans from traffic cameras are generated against the registration number and sent to the registered owner. Police notices about a vehicle involved in an offence go to the registered owner. A vehicle abandoned on a road is traced to the registered owner.
So the most important advice on this page is also the simplest: a seller should treat the transfer as his own responsibility, not the buyer’s, and should not consider the sale complete until the record shows the buyer’s name.
Section 50 of the Motor Vehicles Act places duties on both parties, with time limits that depend on whether the vehicle stays in the same State. Broadly:
| Situation | Seller must report | Buyer must report |
|---|---|---|
| Vehicle registered in the same State | Within 14 days of the transfer, sending a copy to the buyer | Within 30 days of the transfer |
| Vehicle registered in another State | Within 45 days, with the no objection certificate or proof of having applied | Within 30 days of the transfer |
| Owner has died | The successor applies, generally within three months of the death | |
Failure to report within the time can lead the registering authority to impose a penalty or late fee, in addition to any fees for the transfer. The amounts vary and are modest compared with the real risk, which is liability.
Two practical points follow. First, the seller’s duty is independent: the seller must report whether or not the buyer reports, and should not rely on the buyer’s promise to “get it done”. Second, the clock runs from the transfer, meaning the sale and handover, not from when the parties get round to the paperwork. A sale letter that records the date and time of delivery fixes that point.
In practice, the cleanest way to meet both parties’ obligations is to file the transfer together, on the day of sale or within a few days, with all documents ready and the buyer’s identity verified. Where the buyer is in another State, the seller should apply for the no objection certificate before the sale, so that it is in hand when the vehicle is handed over.
The Central Motor Vehicles Rules prescribe forms for each kind of change to a registration. Knowing which applies avoids most rejected applications.
| Form | Used for | Signed by |
|---|---|---|
| Form 28 | No objection certificate for moving to another authority | Owner |
| Form 29 | Notice of transfer of ownership | Seller |
| Form 30 | Report and application for transfer of ownership | Seller and buyer |
| Form 31 | Transfer on the death of the owner | Successor |
| Form 32 | Transfer of a vehicle bought at a public auction | Buyer |
| Form 33 | Intimation of change of address | Owner |
| Forms 34 and 35 | Recording and terminating a hypothecation | Owner and financier |
| Form 26 | Duplicate registration certificate | Owner |
The forms have been amended several times, and on the online portal they appear as screens rather than printed pages. The Ministry of Road Transport and Highways has notified a number of registration services as available contactless, with Aadhaar authentication, and States have adopted them at different speeds. Where the online route is used, the application generates a receipt and a reference number; those should be saved, because they are the proof that the application was made and when.
Not every transfer can be completed entirely online. Where the Aadhaar details of a party do not match, where the vehicle needs inspection, or where the authority wants original documents verified, a visit is still required. Old vehicles whose records were never fully migrated to the national database sometimes need the record to be updated first.
Whatever the route, the forms ask for the same core information: the registration number, chassis and engine numbers, the names and addresses of seller and buyer, the date of transfer, and details of insurance, tax and any hypothecation. A mismatch in any of these — most often a chassis number misread from a faded certificate — is the commonest reason for rejection.
For an ordinary sale within the same State, the authority will usually want:
For special cases, add the documents in the later sections: a death certificate and succession proof on death; a board resolution or authority letter for a company; an auction certificate for an auction purchase; a duplicate registration certificate if the original is lost.
The buyer’s address matters more than people expect. The vehicle will be registered at that address, notices will go there, and a buyer in another State will have to register the vehicle there. An address proof that does not match the application is a frequent reason for return.
Photocopies should be self-attested, and the parties should keep a complete copy of everything submitted, together with the receipt.
For a private car sold within Delhi, a well-run transfer looks like this.
Two things should never happen: signing blank forms for the buyer to complete later, and handing over the vehicle on the buyer’s promise to file. Both are how sellers end up in accident tribunals.
Have us prepare and file the transfer
The Motor Vehicles Act does not require a written sale agreement for a vehicle, and many sales happen without one. That is a mistake, because the sale letter is the seller’s best evidence of when his responsibility for the vehicle ended, as between him and the buyer.
A useful sale letter, sometimes called a delivery note, records:
Both parties sign, ideally with a witness, and each keeps a copy. A photograph of the buyer with the vehicle and the handover documents, dated, is a sensible addition.
What the sale letter cannot do is bind a third party. It will not stop an accident victim from claiming against the registered owner. It gives the seller a claim against the buyer to be reimbursed, and evidence against challans issued after the handover. That is valuable, but it is no substitute for completing the transfer.
Where a buyer asks the seller to give an indemnity or undertaking about the vehicle’s past — that there are no dues, no accidents, no pending cases — the seller should give only what he knows to be true. Our indemnity bond guide explains how such documents work for vehicles.
Most vehicles bought on loan are hypothecated to the lender: the lender has a charge over the vehicle, and the registration certificate records it. Under the Motor Vehicles Act, while the hypothecation is recorded, the transfer of ownership cannot be entered without the financier’s written consent.
There are three situations.
The loan is repaid but the charge is still recorded. This is very common: the owner paid the last instalment years ago and never asked the lender for the papers. The owner should get the lender’s no objection letter and Form 35, signed by the lender, and apply to have the hypothecation removed, before or together with the transfer. Where the lender has merged, closed or cannot find the file, getting these can take time; the request should go in writing to its grievance officer, and to the Reserve Bank’s Ombudsman if ignored. Our loan closure documentation service follows these up.
The loan is outstanding and the buyer will pay it off. The buyer, or the seller from the sale price, pays the lender directly the amount in the lender’s foreclosure letter. The lender then issues the no objection and Form 35. The buyer should pay the seller only the balance after the lender has been paid, and should never pay the whole price to the seller on a promise to close the loan.
The buyer is taking a new loan. The buyer’s lender will want the seller’s charge removed and its own hypothecation recorded on Form 34 in the same application. Our vehicle loan documentation service prepares the file.
A buyer should check the hypothecation status on the online record before paying anything. The record, not the seller’s word, is what the transfer will be tested against.
Insurance follows the vehicle, with a qualification. Section 157 of the Motor Vehicles Act provides that where the owner transfers the vehicle together with its policy, the certificate of insurance and the policy are deemed to have been transferred to the buyer from the date of the transfer. The purpose is to make sure there is no gap in the compulsory third-party cover.
The buyer should nonetheless apply to the insurer promptly to have the policy transferred into his name, with the sale letter and the registration details. The deeming provision is directed at third-party liability; insurers may treat own-damage cover differently until the policy is endorsed, and a buyer who makes an own-damage claim on a policy still in the seller’s name may face a dispute.
The no-claim bonus is a discount on the own-damage premium earned by the policyholder for claim-free years. It belongs to the insured person, not to the vehicle. On sale, the seller should ask the insurer for a no-claim bonus certificate or retention letter, which he can use on his next vehicle within the period the insurer allows. The buyer, in turn, is not entitled to the seller’s bonus, and the insurer may recover the difference in premium when the policy is transferred.
Some sellers prefer to cancel their policy and let the buyer take out a fresh one. That is possible, but the vehicle must not be on the road for a moment without third-party cover, and the timing has to be managed. Where the seller keeps the policy and the buyer takes the vehicle uninsured, both are exposed.
If an accident has already happened, the insurance position becomes central; see the section on accidents below, and our third party insurance claim and insurance claim documentation services.
Three kinds of outstanding item can hold up a transfer.
Challans. Traffic challans, especially the electronic ones generated by cameras, are linked to the registration number. Many authorities will not process a transfer while challans are pending. The seller should check for pending challans on the official e-challan system and pay or contest them before the sale. Challans issued after the handover but before the transfer will be addressed to the seller; the sale letter recording the time of handover is his evidence, and some challans can be contested on that basis. Challans that go to a virtual court for disposal need to be dealt with there.
Road tax. In Delhi and many States, road tax for private vehicles is paid once at registration for the vehicle’s life, so no further tax is due on a sale within the State. Commercial vehicles pay periodic tax, and arrears must be cleared. Where the vehicle is going to another State, the new State will charge its own tax on re-registration, and the original State may allow a refund of the unused portion on application. Rules differ from State to State.
Pollution under control certificate. A valid certificate is required for most registration services. It is quick to obtain from an authorised testing centre, and its absence is an avoidable reason for rejection.
Other blocks include a vehicle marked as involved in a pending case, a vehicle blacklisted for non-payment or other reasons, and a vehicle whose fitness or registration validity has lapsed. The online record usually shows these. A blacklist entry must be cleared with the authority that made it before anything else can happen.
A vehicle can cross State borders freely, but it cannot stay registered in one State while being kept permanently in another. Two different situations arise.
A sale to a buyer in another State. The seller applies to his registering authority for a no objection certificate on Form 28, confirming that no tax is due, no case is pending and the vehicle is not reported stolen. With that certificate, the buyer registers the vehicle in his own State, paying that State’s tax. The seller’s time for reporting in this case is longer, but the certificate should be applied for early; our NOC guide explains Form 28 and the rule that the certificate is deemed granted if not refused within thirty days.
An owner moving house. Under section 47 of the Act, a vehicle registered in one State and kept in another for more than twelve months must be registered in the new State. The owner obtains a no objection certificate from the original authority, applies for a new registration mark in the new State, pays the new State’s road tax, and claims a refund of unused tax from the original State where its rules allow. A change of address within the same State is simpler: the owner intimates the new address on Form 33 within the prescribed time.
In both cases, the insurer should be told of the new registration number and address, and the vehicle should carry the new number plates, including high security registration plates where the new State requires them, as soon as the new registration is issued.
People who move often for work should consider whether they qualify for a Bharat series registration, described next, before buying their next vehicle.
The Bharat series, introduced by the Central Government in 2021, is an optional registration mark designed for people whose work moves them between States. A vehicle registered in the BH series carries a registration number with the letters BH, and does not need to be re-registered when its owner moves to another State.
As notified, the scheme is open to defence personnel, employees of the Central and State Governments and their public sector undertakings, and employees of private sector companies and organisations that have offices in a minimum number of States or Union Territories, subject to a certificate from the employer. Road tax for BH-registered vehicles is paid for two years at a time, or in multiples of two years, rather than for the vehicle’s life, at rates set by reference to the vehicle’s price and fuel type.
The scheme is generally used when a new vehicle is registered. Rules on converting existing vehicles to the BH series, and on transferring BH-registered vehicles to buyers who are not themselves eligible, have been clarified by later amendments, and a seller or buyer of a BH vehicle should check the current position. The eligibility conditions and tax rates are also revised from time to time.
For an eligible person who expects to move, the scheme avoids the no objection certificate, re-registration and tax refund cycle entirely. For everyone else, the ordinary rules apply.
When a registered owner dies, the vehicle becomes part of his estate, and the person entitled to it — under a will, by succession, or by agreement among the heirs — can have it transferred into his name.
The Act and rules provide that the person succeeding to possession of the vehicle may use it for a period of three months after the death as if it were registered in his name, and should apply within that period for transfer, using Form 31, to the authority where the vehicle is registered. In practice, authorities accept applications after three months with a late fee, but the heirs should not let years pass.
The application is usually supported by:
Where the heirs agree that one of them should take the vehicle, a simple no objection from each of the others usually suffices; our NOC affidavit guide explains how such a document should be framed. Where the heirs do not agree, the authority will generally wait for the dispute to be resolved. If the heirs want to sell the vehicle rather than keep it, it is usually simpler to transfer it into one heir’s name first and then sell.
The insurance should also be transferred to the successor, with the death certificate, so that cover continues.
Vehicles owned by a company or firm. A company acts through authorised persons. The transfer forms are signed by a director or officer authorised by a board resolution, which the authority will ask to see, together with the company’s PAN and the signatory’s identity. For a partnership firm, the partners or an authorised partner sign, with the partnership deed or an authority letter. Where a company buys a vehicle, the same applies in reverse. Our authority letter service prepares the authorisation for either side.
Vehicles bought in an employee’s name under a company car scheme, and later transferred to the employee, are a frequent source of confusion: the company paid, but the employee is the registered owner, or the reverse. The scheme documents should be matched to the register before the vehicle is sold or the employee leaves.
Auction purchases. A vehicle bought at a public auction — by a bank repossessing a vehicle, by a government department, or by the police disposing of unclaimed vehicles — is transferred on the basis of the auctioning authority’s certificate of sale, using Form 32, without the previous owner’s signature. The buyer should obtain from the auctioneer the sale certificate, the release order and, for repossessed vehicles, the financier’s documents, and apply within the prescribed time.
Sales through dealers. Many used vehicles pass through dealers, and for years the practice was for the owner to sign blank forms and hand the vehicle to a dealer, who then sold it on, sometimes after months, with the owner still on the register throughout. Amendments to the rules made in 2022 created a framework for authorised dealers of registered vehicles: the dealer obtains an authorisation certificate from the registering authority, the owner notifies the authority when he delivers the vehicle to such a dealer, and the dealer is treated as responsible for the vehicle while it is in its possession, including for challans and for any use of the vehicle.
A seller handing a vehicle to a dealer should therefore check that the dealer is authorised under these rules, make sure the delivery is reported to the authority, and keep the dealer’s acknowledgement. A seller who signs blank forms for an unauthorised dealer is in the same position as one who sold privately and never transferred.
Commercial vehicles — taxis, goods carriers, buses, autorickshaws — are transferred in the same way as private vehicles, with additional requirements.
Tax. Commercial vehicles usually pay road tax periodically, and tax must be paid up to date. The no objection certificate for a move to another State will not issue while tax is due.
Fitness. A transport vehicle must hold a current certificate of fitness. A transfer of a vehicle whose fitness has lapsed may be refused until it is renewed.
Permits. A permit to operate a transport vehicle is granted to a person for a vehicle, and it does not pass automatically with the vehicle. Under the Motor Vehicles Act, a permit can be transferred only with the permission of the transport authority that granted it, and the rules and policies on transfer vary by the kind of permit and by State. Some permits cannot be transferred at all except on the death of the holder. A buyer of a commercial vehicle should not assume that the seller’s permit comes with it, and should make the sale conditional on the permit position being clear.
Insurance. Commercial vehicles carry different policies, including cover for passengers or goods. The endorsement on transfer should cover all of them.
Vehicles under schemes. Autorickshaws, taxis and some goods vehicles in Delhi are subject to policies on the number of permits, fuel type and replacement of old vehicles. These affect whether a vehicle can be transferred and on what terms, and should be checked with the Transport Department before any money changes hands.
Because the documents are more numerous and the consequences of a missing permit are larger, commercial vehicle transfers are the ones where a checklist prepared in advance saves the most time.
Delhi and the National Capital Region have for some years restricted the use of older vehicles on air quality grounds, following orders of the National Green Tribunal and the Supreme Court. As generally applied, diesel vehicles older than ten years and petrol vehicles older than fifteen years are not permitted to ply in the region. How these rules are enforced — through deregistration, fuel restrictions, impounding or otherwise — has changed over time and has been the subject of fresh orders and policy announcements, so owners should check the position at the time.
For transfers, the practical consequences are these. A vehicle that has reached the age limit generally cannot be transferred to a buyer who will keep it in Delhi. The Delhi Transport Department has issued no objection certificates allowing such vehicles to be re-registered in States where they are still permitted, within conditions, and a sale to a buyer in such a State may be possible. A vehicle that has been deregistered may no longer be transferable at all, and the owner’s options may be limited to sale for scrapping through a registered vehicle scrapping facility, which issues a certificate of deposit that can bring concessions on a new vehicle.
Buyers in Delhi should be especially careful with vehicles close to the age limit: a car that is cheap because it has a year left may have much less than a year of useful life in the city. Sellers should not leave the decision until after the limit has passed, when options narrow.
Registration validity is a separate point. A private vehicle’s registration is generally valid for fifteen years and may then be renewed, subject to fitness and, in Delhi, to the age restrictions above.
A lost or damaged registration certificate must be replaced before most transfers can proceed. The owner applies to the registering authority for a duplicate on Form 26, usually with a report of the loss to the police — online lost-article reports are commonly accepted — and, where the authority requires, an affidavit about the loss.
If the vehicle is hypothecated, the financier’s consent to the issue of a duplicate is usually needed, since the certificate records its charge. If the vehicle has been sold and the buyer lost the certificate before the transfer, the application must still be made by the registered owner, which means the seller has to cooperate.
For smart-card registration certificates, and for vehicles whose records are fully digital, the duplicate may be issued in digital form, and the certificate available on official digital document platforms may be accepted in place of a physical card for many purposes.
Some authorities allow the application for a duplicate and the transfer to be made together, which saves one round. Our lost document affidavit guide explains the affidavit commonly asked for, and our lost document affidavit service prepares it.
A buyer takes on everything the vehicle carries, and a few minutes of checking avoids most of it.
The registration details of a vehicle can be checked through official Parivahan services, which show limited information to the public and more to the owner. Private apps that claim to show full details should be used with care.
A buyer who pays before these checks, or pays the full price to a seller whose vehicle is hypothecated, is taking a risk that the seller’s goodwill cannot cover.
In some sales, particularly of older vehicles and through dealers, the seller signs a power of attorney authorising the buyer or a dealer to deal with the vehicle, instead of transferring it. The buyer then uses the vehicle, and sometimes sells it on, on the strength of the power of attorney.
A power of attorney is an authority to act on the owner’s behalf. It does not make the attorney the owner, and it does not change the register. The seller remains the registered owner, with the liability that the Supreme Court has confirmed. The power of attorney may also end on the seller’s death or revocation, leaving the buyer with a vehicle he cannot transfer.
There are legitimate uses: an owner abroad may give a relative a power of attorney to sell the vehicle and sign the transfer forms on his behalf, and the transfer is then completed in the buyer’s name. That is a power of attorney used to complete a transfer, not in place of one. Our power of attorney guide explains what these documents can do and how they end.
The buyer will not complete the transfer. This is the commonest problem. The seller should act quickly and in writing.
Where these steps fail, a civil suit for a direction to transfer, or for indemnity, may be needed; if the vehicle is being misused, a police complaint may be appropriate. Those are matters for your advocate, engaged and paid by you directly; we do not quote, collect or share that fee. Our find an advocate page explains how to choose one.
The seller will not sign. A buyer who has paid and taken the vehicle but cannot get the seller to sign the transfer is also stuck. The same sequence applies in reverse: written demand, legal notice, and if necessary a suit. The buyer’s receipt and sale letter are his evidence. Some authorities have procedures for transfer where one party is untraceable, usually requiring affidavits, an indemnity and sometimes a newspaper notice.
The dealer has vanished. Where a vehicle was handed to a dealer who sold it and disappeared, the seller should report the facts to the police and the registering authority at once, with whatever documents exist.
Sometimes the problem surfaces only when a notice arrives from a Motor Accidents Claims Tribunal, or from the police, naming the seller as owner of a vehicle he sold long ago.
The notice should not be ignored. The claim can proceed against the registered owner in his absence, and an award against him can be enforced. The steps are:
Where the policy was valid and deemed transferred to the buyer, the insurer will ordinarily be liable to pay the third-party claim, and the seller’s exposure may be limited. Where there was no valid insurance, the registered owner can be personally liable, with only a claim against the buyer to fall back on. That is why the transfer, and the insurance, matter more than the price.
Our third party insurance claim service helps assemble the documents for the insurer and the Tribunal file.
A retired teacher in Rohini sells her hatchback to a young man introduced by a neighbour. He pays by bank transfer and takes the car the same evening, promising to “do the RTO work” the following week. She signs a sale letter recording the time of handover and the odometer reading, keeps a copy of his Aadhaar and address proof, and photographs him with the car.
Three weeks later, the record still shows her name, and two camera challans for speeding on the Ring Road arrive on her phone. She writes to the buyer, who does not reply. She reports the sale to the zonal office with her sale letter and his details, and writes to her insurer. She contests the challans in the virtual court with the sale letter, which records that the car left her possession before the offences.
A legal notice brings the buyer back. He had been waiting to resell the car and did not want to pay the transfer fee twice. The transfer is filed and completed within the month, and her insurer endorses the policy to him. Had the car been in an accident in those three weeks, her documents would have helped her against the buyer, but would not have kept her out of the claim.
A man in Janakpuri dies, leaving a seven-year-old petrol car registered in Delhi in his name. His widow and two adult children agree that the son, who lives in Gurugram, should take it.
The widow and daughter each sign a no objection in the son’s favour. The son applies on Form 31 to the Delhi authority with the death certificate, the family’s no objections, an undertaking, the registration certificate, the insurance and the pollution certificate. He applies within three months, so no late fee is charged. The car is transferred into his name in Delhi.
Because he keeps the car in Gurugram, he then applies for a no objection certificate on Form 28, and within the twelve months section 47 allows he registers the car in Haryana, paying Haryana’s road tax and applying to Delhi for any refund its rules permit. He tells the insurer of the new registration number and fits the new plates.
Had he tried to register the car directly in Haryana without first transferring it from his father’s name, the Haryana authority would have had no owner to take the no objection certificate from.
Our vehicle transfer and NOC documentation is ₹2,500 and usually takes 7 – 30 days, depending on the authority and whether a no objection certificate is needed. We prepare and follow up the documents; we are not an RTO agent, we do not deal with officials informally, and we cannot promise a date the authority has not given.
| What is included | Why it matters |
|---|---|
| A check of the vehicle record and a checklist for your case | Blocks found before you apply |
| Transfer forms, or the online application, prepared with you | Numbers and names that match the record |
| Sale letter and delivery receipt | Evidence of when your responsibility ended |
| Affidavits, undertakings or no objections the authority asks for | Inheritance, lost documents and absent parties handled |
| Form 28 application where the vehicle moves State | The NOC in hand when it is needed |
| Hypothecation removal and insurance endorsement follow-up | No loose ends after the transfer |
Government fees, tax, late fees and challans are at actuals, and we tell you the total before we start. Accident claims, consumer cases and court matters are for your advocate, whose fee is engaged and paid by you directly; we do not quote, collect or share it.
The law looks to the register, not to who holds the keys. A seller who hands over a car on a promise, without a sale letter and without filing the transfer, keeps the challans and, far worse, the accident claims. Check the record, clear the loan and the challans, sign a sale letter that records the time of handover, and file the transfer together. Send us the registration details and tell us what you are doing — selling, buying, inheriting or moving — and we will prepare the papers and follow them through.
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