Nagpur RTO Investigates 23 Luxury Cars for Tax Evasion

The Nagpur Regional Transport Office has blacklisted 23 luxury vehicles suspected of evading Maharashtra's motor vehicle tax.

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Aapla Nagpur Desk
20 Oct 2026, 8:05 AM IST · 2 min read
Source: Nagpur Today
Nagpur RTO Investigates 23 Luxury Cars for Tax Evasion
KEY TAKEAWAYS
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23 luxury cars purchased in Nagpur but registered in other states have been blacklisted.

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The investigation focuses on tax evasion practices related to vehicle registrations.

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Owners of vehicles found liable will face tax recovery actions.

The Nagpur Regional Transport Office (RTO) has taken significant action by blacklisting 23 luxury vehicles suspected of evading road tax in Maharashtra. These vehicles, although purchased in Nagpur, were registered in states or Union Territories with lower tax rates, allegedly to circumvent the higher taxes imposed in Maharashtra. This move aims to halt any further documentation processes related to these vehicles until a thorough investigation is completed.

Regional Transport Officer Kiran Bidkar stated that the RTO is currently scrutinizing various records, including service histories from authorized service centers, FASTag transaction logs, insurance documents, and Pollution Under Control (PUC) certificates. This comprehensive examination is intended to establish the usage patterns of these vehicles, which will inform any tax demands that may follow.

Preliminary findings indicate that the vehicles in question were registered in locations such as Dadra and Nagar Haveli, Daman and Diu, Chandigarh, and Punjab, where road tax rates are significantly lower than those in Maharashtra. The suspected practice involves registering vehicles outside of Maharashtra while they are primarily used within the state, potentially violating the Motor Vehicles Act, 1988, which mandates that vehicles kept in another state for over 12 months must be re-registered there.

Maharashtra imposes higher road tax rates on luxury vehicles, with petrol cars attracting a 13% tax, diesel cars a 15% tax, and imported or corporate-registered vehicles facing a 20% tax. The RTO is examining these discrepancies as part of its investigation into the suspected tax evasion.

The RTO's enforcement actions include stopping vehicles like a newly purchased BMW X1 M Sport near Deekshabhoomi, where an e-challan was issued. This case is part of a broader initiative to scrutinize luxury vehicles registered outside Maharashtra but suspected of being used within the city without fulfilling the state's tax obligations. Following the investigation, vehicle owners found liable will be required to pay the owed taxes, marking a significant step in addressing potential tax evasion in the luxury car segment.

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