Karnataka vehicle registration scam causes over Rs 15 crore loss to state exchequer

A major registration scam has come to light at the Bengaluru Central Regional Transport Office (RTO), with 1,471 vehicles, including luxury cars, avoiding payment of lifetime Motor Vehicle tax. The vehicles were registered between April 2015 and November 2021, leading to an estimated loss of Rs 15.2 crore to the state exchequer.

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Following an FIR lodged on October 24, 2024, Bengaluru Police have begun issuing notices to vehicle owners registered at the Bengaluru Central (HSR Layout) RTO, formerly known as Koramangala RTO. The notices aim to recover the evaded taxes from vehicle owners.

Experts, however, warn that the scale of the scam is far broader, suggesting a need for a comprehensive investigation covering around 70 RTOs across Karnataka. They believe the issue may involve more vehicles and officials, raising concerns over the integrity of the state's transport system.

The authorities are under increasing pressure to address the growing concerns and ensure accountability in RTO operations. As the investigation unfolds, officials are prioritizing efforts to recover the lost revenue, which could have significant implications for the state’s financial health.