Yes, that dealer is right. You cannot transfer ownership of vehical from different state into Delhi.
But, You can re-register vehicles brought to Delhi from other states
If a registered owner of a vehicle brings the vehicle to Delhi, which is already registered in some other state after obtaining a N.O.C from the concerned state can apply for re-registration in Delhi, The documents required are as under:
- Other state registration certificate in original.
- Form 28 (NOC in duplicate)
- Form 27.
- Form 20.
- Attested copy of address proof.
- Attested copy of valid insurance.
- Attested copy of pollution under control certificate.
- Challan clearance from traffic police or enfrocement wing of transport deptt. On case of commercial vehicle only.
- Fitness certificate issued by the board of inspec. Burari.
- Road tax (as applicable)
- Prescribed fee for registration.
- PAN Card or Form 60 & 61 ( as applicable).
- Parking Fees.
- Certificate manufactured regarding emission norms.
Note : Such registration of vehicle are subject to clearance from National Crime Record Bureau. The Transport Department arranges the clearance certificate themselves.
Note: Attested copy means photo copy attested by MLA/ Nigam Parshad/ Gazetted officer/ notary public.
http://www.delhi.gov.in



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