(1) An inland 2 [mechanically propelled vessel] registered under this Act in one State shall not be transferred to a person resident in another State in India or in any country outside India, without the previous approval of the Government of the State in which the vessel is registered:
Provided that where an inland 2 [mechanically propelled vessel] is 3 [registered or deemed to be registered under the Merchant Shipping Act, 1958 (44 of 1958)], this sub -section shall have effect as if for the words “the Government of the State in which the vessel is registered” the words “the Central Government” had been substituted.
(2) Subject to the provisions of sub-section (1), the owner of an inland 2 [mechanically propelled vessel] registered under this Act and the transferee thereof shall, within thirty days of the transfer of ownership of the said vessel to the transferee, jointly make a report of the transfer to the registering authority within the local limits of whose jurisdiction the transferee resides or carries on business and shall also forward the certificate of registration to that registering authority, together with the prescribed fee, in order that particulars of the transfer of ownership may be entered thereon.