As per the Motor Vehicles Act, 1988, it is mandatory for the new owner of a vehicle to report the transfer of ownership within the prescribed period to the respective Regional Transport Office (RTO) or the concerned authority. The prescribed period for reporting the transfer of ownership of a vehicle is 14 days from the date of sale or transfer of the vehicle.

If a person fails to report the transfer of ownership of a vehicle within the prescribed period, they could face legal consequences. The specific penalties can vary depending on the state or jurisdiction, but generally, the penalties are as follows:

1. Fine: The fine for failing to report the transfer of ownership of a vehicle within the prescribed period can range from Rs. 500 to Rs. 2,000, depending on the severity of the offense.
2. Transfer of liability: The new owner may be held responsible for any future legal or financial liabilities related to the vehicle, even if they were not the actual owner at the time of the offense.
3. Legal action: In case of a serious offense or repeated violations, legal action may be taken against the offender, which could result in imprisonment or suspension of driving license.