The Mumbai RTO has detected 45 cases of luxury cars allegedly registered in Daman and Diu to avoid Maharashtra’s higher road tax, seizing two vehicles and examining the role of four auto dealerships in the registrations. The enforcement drive began on October 5, with a major focus on Mumbai’s western suburbs.
The action was ordered by Maharashtra transport commissioner Rajesh Narvekar and has been led locally by regional transport offices, particularly those operating around Andheri. A senior RTO official said the cases involved high-end vehicles using the Union Territory’s DD registration series despite being used in Mumbai.
According to the transport department, the initial cases represent an estimated revenue leakage of Rs 4 crore to Rs 5 crore. Officials said Maharashtra’s road tax on high-end and imported cars generally ranges between 15% and 20% of a vehicle’s cost. For vehicles priced from Rs 50 lakh to Rs 2 crore, the resulting tax liability can run into several lakhs of rupees.
The RTO has alleged that some owners used proxy addresses or other arrangements to obtain registrations outside Maharashtra. The department said such registrations could reduce the tax payable to nearly half or even one-third of the amount applicable in Maharashtra. The investigation has also found that dealership agents allegedly recommended the arrangement to buyers during sales negotiations.
The vehicles under scrutiny include models such as Mercedes cars priced at around Rs 1.5 crore, Land Rover Defenders costing approximately Rs 2 crore and Porsche vehicles. RTO officials said several owners arranged interstate registrations independently, while the examination of dealerships is intended to determine whether commercial establishments facilitated or encouraged the practice.
The enforcement action has broader implications for how states collect vehicle taxes from cars that are registered elsewhere but primarily used within their territory. Maharashtra’s transport authorities said vehicles using Mumbai’s roads while avoiding the state’s registration-related tax obligations reduce funds available to the public exchequer and infrastructure services.
Officials have issued warnings to at least four local dealerships. The department said businesses found coaching customers or enabling false out-of-state registrations could face legal action and suspension of their trade licences. The RTO’s investigation and further enforcement actions are continuing.
