When a car's status is marked as 'blocked,' it is no longer considered to be under your name. This means that if any criminal activity, wrongdoing, or even an e-challan is associated with the vehicle, it can be impounded, and the last registered owner typically doesn't face legal consequences. However, even if you have proper paperwork, if any illegal activity is carried out using the car, you may still face legal issues and could be required to provide clarification.