It is true that the transfer has to be completed by the previous owner otherwise he would be held liable in case of any mishap. The new owner may always escape liability. 

Therefore contact the 1st owner and start the transfer process through the RTO. It may get delayed but at least the process may begin and current ownership can be established.

If there was an accident they would have contacted you.

1) in case of accident you would also be held liable as bike ownership stands in your name 

2) inform RTO by registered post that you have sold the bike to x Person . Enclose proof of sale 

3) 

also send letter to local police station that purchaser has not transferred bike in his name yet and you apprehend bike may be used for terrorist activities .

4) you can also publish public notice in 2 local newspapers that the seller shall in no way whatsoever be responsible for any misdeeds,unlawful activities or any acts of omission or commission with the bike (state make, model,type of body,registration number, engine and chassis nos.)by the buyer or any other person who directly or indirectly uses the bike for such misdeeds,unlawful activities or any acts of omission or commission. The liability of such misdeeds,unlawful activities or any acts of omission or commission shall solely rest with the buyer of the bike ."

Mulcting liability on seller just because there is no formal sell transaction is certainly unfair. But law is based on common sense and common sense demands that seller should take all care otherwise it will be impossible to determine liability. You may say that you have signature on paper and video recordings but that is not the procedure. Law helps only diligent. You can only pray God that nothing untoward happens with you vehicle.  

-   You are correct, you will be liable in case of accident as bike ownership stands in your name.

-   Incase of any illegal act, police will reach RTO where police will get your details.
now you will tell police that you sold it but legally you are still owner because you not updated RTO records.
Now police have to investigate extra because of you being busy.
So police have to give you some rest because you made them busy.

-    So it better to make contact with first purchaser and transfer records. 

If its sold further and its not possible then you have to follow these steps. 

-    You inform RTO  that you have sold the bike with proof of sale.

-    Also you have to send letter to local police station that purchaser has not transferred bike in his name.

-    Further you should publish public notice in 2 newspapers for same.

Just try to connect with the first owner, and if you can trace him; just go ahead with the transfer formalities.

In case you are unable to trace the current/first owner; just inform the concern RTO of the sale and indemnify yourselves. 

Dear Sir,

1) Yes in case any offense is committed the owner who's name is registered shall be held responsible.

2) You should inform RTO that the bike has been sold to the first purchaser with affidavit and any proof sale. If you connect to first owner and undergo the formal proceedings of transfer that would be great.

3) On the other hand if you cannot get the first purchaser then you should also publish notice in 2 public newspapers that you had made sale of the bike and are not responsible for whatever if so happens with that bike.

4) You should inform your nearest police station about the sale to indemnify yourself.

Thank you

If the vehicle has not been legally transferred to the buyer's name then the original owner shall be held for any mishap including an accident claim or if the bike has been involved in any illegal activity.  

Law will not understand your explanation that you did not have time to transfer the ownership legally to the purchaser even after receiving the money.

If you have the address of the first owner  you can write to him stating that he never bothered to transfer the vehicle to his name after buying it and that yo ware willing to do it by following due process of law and instruct him to cooperate  with you for this or else to return the vehicle and take back the money he paid.

You can endorse a copy of this communication  to the concerned RTO.

If the buyer do not respond then you can intimate the fact to the RTO by enclosing the copy of this letter and request for making an endorsement in the register  about the transfer of the vehicle to so and so person by the original owner on so and so date.

When the owner of the vehicle wants to dispose the vehicle i.e sell the vehicle or gift to someone or change ownership after death of owner etc, transfer of ownership can be carried out by RTA and STA depending upon the class of vehicle

 Where the ownership of the vehicle transferred, the owner of the vehicle should intimate to the registering authority (RTO/MVI) and the owner will be held responsible for any legal issue if the vehicle not transferred /change of ownership.

Its is very important that seller or previous owner should transfer the ownership to new buyer at the time of selling the vehicle because seller or previous owner will be in trouble and legally responsible for all the offences carried out with the vehicle by buyer or new owner without transfer of ownership such as traffic violations, traffic offences, accidents if any, crime committed with vehicle etc .

First you check the present status of ownership of vehicle in RTO records by website. If the ownership is still is in your then contact the purchaser and ask him to change the ownership immediately. If the purchaser has not transferred bike in his name also file a complaint against him on near police station for avoiding future complication with regard to Vehicle.

The owner of the vehicle is liable in case of accident happens.

Send a letter to RTO by registered post that you have sold the bike to the person (Name and address of the Purchaser) on date …

- As per the Supreme Court Judgment, if you sold your vehicle and failed to transfer the ownership through legal way, then you will remain the owner of the vehicle, and further you will be responsible for any untoward incident and accident by the buyer. 

- As per the Indian Motor Vehicle, the transferor (seller) has to inform the Regional Transport Offices (RTO) within 14 days of the transfer of ownership. 

- Further , this Act also instructs the transferee (buyer) to inform the RTO about the change in vehicle ownership and produce all the required documents within 30 days of the transfer.

- You should first lodged your complaint with the police station after narrating all the facts and submit all the documents you have in your support.

- Further, also inform the RTO in written, after enclosing the said police complaint receiving copy , and thereby  request the official to change the ownership.

1. On sale of vehicle the intimation has to be sent to the jurisdictional RTO under Motor Vehicles Act.

2. Unless the RC is transferred to the buyer you continue to remain the owner of bike for all legal and practical reasons. So if the bike is found to have been used in commission of an offence the cops will grab your neck as well.