Nagpur RTO Targets 23 High-End Cars Registered Outside Maharashtra

In a decisive move against tax evasion, the Nagpur Regional Transport Office (RTO) has blacklisted 23 luxury vehicles that were purchased in the city but registered in other states and Union Territories. This action aims to address the growing concern over significant revenue losses to Maharashtra's exchequer due to the practice of registering high-end vehicles in regions with lower tax rates.

The blacklisting comes as part of a broader crackdown on luxury vehicle owners who have been exploiting the disparity in road tax rates between Maharashtra and neighboring regions. Vehicles registered in Daman and Diu, as well as Chhattisgarh, benefit from much lower tax rates, prompting many owners in Nagpur to register their cars outside the state. According to Nagpur City RTO Kiran Bidkar, the chassis numbers of the blacklisted vehicles have been locked to prevent any further registrations in other states.

Maharashtra imposes a road tax of approximately 15% on vehicles valued over Rs20 lakh, while imported vehicles face a tax of around 20%. In stark contrast, Daman and Diu charge only 3% to 4%, leading to substantial savings for luxury car buyers. Bidkar noted that this tax discrepancy has made Daman and Diu a favored registration location for luxury car owners from major cities like Nagpur, Mumbai, and Pune. Some showroom operators even encourage buyers to take advantage of these lower rates, further exacerbating the issue.

The blacklisted vehicles include those that have already registered in other states and those that initially received temporary registrations in Maharashtra before securing permanent registrations elsewhere. This loophole has been exploited by several prominent individuals, including politicians and business figures, although it is unclear if any of their vehicles are among those blacklisted.

The issue of tax evasion through out-of-state vehicle registrations has previously garnered attention in the Maharashtra legislature. In July, Congress MLA Vijay Wadettiwar raised concerns about an alleged organized “RTO racket” facilitating these registrations. In response to these allegations, the state government has established a Special Investigation Team (SIT) to investigate the matter further, signaling a serious commitment to addressing tax evasion in the region.