Maharashtra Probes 5,664 High-Value Vehicles Registered Outside State Over Suspected Tax Revenue Loss
Mumbai: The Maharashtra transport department has ordered verification of 5,664 vehicles valued at more than Rs 50 lakh each after finding that they were sold by dealers in the state during 2025-26 but registered outside Maharashtra. The department suspects that some of these vehicles may be regularly used on Maharashtra roads, raising questions over possible loss of motor vehicle tax revenue.…
Mumbai: Maharashtra's transport department has launched an investigation into 5,664 high-value vehicles valued above Rs 50 lakh each, registered outside the state during the 2025-26 fiscal year. The department suspects these vehicles may be used regularly on Maharashtra roads, potentially resulting in a loss of motor vehicle tax revenue.
Transport Commissioner Rajesh Narwekar has instructed officials to scrutinize registration documents, owners' addresses, and the reasons for registering the vehicles in other states. Meetings of the concerned Regional Transport Offices (RTOs) will be convened to review the cases and coordinate the verification process. The vehicles encompass sports and luxury cars, along with cranes, trucks, and excavators.
Many were registered in Dadra and Nagar Haveli, and Daman and Diu, where lower taxes might have encouraged out-of-state registration. A change in tax structure for cranes and excavators, which is now based on vehicle value instead of weight, has also made registration in neighboring states like Gujarat more attractive. While the department has not confirmed illegal registration or deliberate tax evasion, the potential revenue impact is significant.
If each vehicle is valued at the minimum Rs 50 lakh, their combined value amounts to Rs 28,320 crore. At an estimated 3% tax rate, around Rs 849.6 crore may have been paid outside Maharashtra. The department estimates that if these vehicles had been registered in the state, the potential revenue could range from Rs 2,500 crore to Rs 3,000 crore.
The transport department has appointed senior motor vehicle inspectors to verify the vehicles sold by dealers and check the compliance of address proofs with Rule 4 of the Central Motor Vehicle Rules, 1989. The nine RTOs that issued the certificates have been directed to provide the relevant documents to the inspectors. The RTOs will hold meetings to review the cases and ensure a coordinated verification process.
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