Maharashtra Probes 5,664 High-Value Vehicles Over Tax Loss

The Maharashtra transport department has initiated an investigation into 5,664 high-value vehicles, each valued at over Rs 50 lakh, that 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, potentially resulting in a loss of motor vehicle tax revenue. Transport Commissioner Rajesh Narwekar has directed officials to verify the registration documents, owners' addresses, and reasons for registering the vehicles in other states.

The vehicles in question include luxury cars, sports cars, cranes, trucks, and excavators. A significant number of these vehicles were registered in Dadra and Nagar Haveli and Daman and Diu, where taxes are comparatively lower. Officials believe that this disparity in tax rates may have encouraged owners to register their vehicles outside of Maharashtra.

A change in the tax structure for cranes and excavators has also been cited as a potential reason for out-of-state registration. Previously, tax was calculated based on the vehicle's weight, but it is now based on the vehicle's value, making registration in neighboring states like Gujarat more attractive.

The transport department estimates that if these vehicles had been registered in Maharashtra, the potential revenue could have been between Rs 2,500 crore and Rs 3,000 crore. However, it is essential to note that the department has not yet established that the vehicles were registered illegally or that tax was deliberately evaded.

The verification process will involve examining the registration documents, owners' addresses, and reasons for registering the vehicles in other states. Meetings of the concerned RTOs will also be held to review the cases and coordinate the verification.

The 5,664 vehicles were valued between Rs 50 lakh and Rs 3 crore. If each vehicle is taken at the minimum value of Rs 50 lakh, their combined value would be Rs 28,320 crore. Based on an estimated 3% tax, around Rs 849.6 crore may have been paid outside Maharashtra.

The department has appointed senior motor vehicle inspectors to examine the vehicles sold by dealers and verify the addresses of their owners. Officials will check whether the address proofs submitted for CRTeM complied with Rule 4 of the Central Motor Vehicle Rules, 1989.

If irregularities are found in the address proofs or other documents, the inspectors have been asked to conduct a detailed inquiry and submit a report within 15 days. The verification will also examine where the vehicles are being used and whether they are complying with the relevant tax laws.

The investigation is ongoing, and the actual revenue impact will depend on the findings of the verification. The transport department is taking a proactive approach to ensure that all vehicles are registered and taxed in accordance with the law, and that the state receives its due revenue.

In conclusion, the Maharashtra transport department's investigation into high-value vehicles registered outside the state is a significant step towards ensuring that the state receives its due revenue. The outcome of the investigation will have important implications for the state's finances and its ability to provide public services.