UT reg for luxury cars: Dealers might lose licence
High-end car dealers in Mumbai may face license suspension after authorities discovered a scheme to register luxury vehicles in Diu and Daman to avoid Maharashtra's higher motor vehicle taxes. Maharashtra's tax rate for private petrol cars over Rs 10 lakh is Rs 20 lakh, while the rate in Diu and Daman is 3%, leading to a potential tax evasion of Rs 14 lakh.
RTO officials in Mumbai have issued show-cause notices to 19 dealers for allegedly registering vehicles in the Union Territory, using fabricated documents such as false Leave and Licence agreements and undisclosed buyer addresses. The investigation identified 287 luxury vehicles across three areas of Mumbai, with 19 dealers targeted for their role in the alleged scheme.
Dealers have seven days to explain why their licenses should not be suspended or cancelled. Customers who purchased cars from the implicated dealers may face questions about their vehicles' tax and registration status if they were registered outside Maharashtra, even if used primarily in Maharashtra. Owners should be prepared to provide purchase invoices, registration certificates, insurance documents, and address proofs, and respond to any RTO inquiries regarding their vehicles' legal status.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
