Mumbai’s regional transport offices have detected 45 luxury cars allegedly registered in Diu and Daman to avoid Maharashtra’s road tax, seizing two vehicles and examining the role of four auto dealerships in facilitating the registrations, according to senior RTO officials.
The enforcement drive began intensifying on October 5, particularly along Mumbai’s western corridor around Andheri. The action was ordered by transport commissioner Rajesh Narvekar and has focused on vehicles using the Union Territory’s DD registration series while being operated in Mumbai.
Initial estimates indicate a potential revenue leakage of Rs 4 crore to Rs 5 crore from the cases identified so far. Officials said the investigation covers both vehicle owners and dealership agents who may have advised buyers to use proxy addresses or shell arrangements to obtain registrations outside Maharashtra.
A senior official involved in the operation 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 between Rs 50 lakh and Rs 2 crore, the liability can run into several lakhs of rupees. Registering the vehicles under the DD series could reduce the tax payable to almost half or one-third of the amount applicable in Maharashtra, the official said.
The vehicles under scrutiny include luxury models such as Mercedes cars, Land Rover Defenders and Porsches. The report said some of the vehicles involved were valued at approximately Rs 1.5 crore to Rs 2 crore. Two vehicles were impounded during the enforcement action, while regional transport officials continued checking the registration and operating patterns of other cars.
The RTO’s investigation indicates that some owners arranged interstate registrations independently, but officials also found that dealership representatives had allegedly recommended the practice during sales negotiations. At least four local dealers have received warnings, with the transport department cautioning that businesses found coaching customers or enabling false out-of-state registrations could face legal action and suspension of trade licences.
The enforcement issue is tied to how Maharashtra collects taxes from vehicles that use its road network. Officials said owners who register cars outside the state but primarily operate them in Mumbai avoid contributing the full local tax while continuing to use the city’s roads and adding to traffic and vehicle-related pollution. The department described the practice as a direct loss to public infrastructure funding.
Regional transport offices, with particular attention on the western suburbs under deputy RTO Swapnil Mane, have brought dozens of luxury vehicles under scrutiny during the drive. The department’s next steps are expected to include further checks of vehicle ownership documents, registration addresses and dealership involvement before action is taken against additional owners or businesses.
