South India State News

Karnataka Faces Rs 15 Crore Loss Due to RTO Scam

A recent scam at the Bengaluru Central Regional Transport Office (RTO) has caused a loss of over Rs 15 crore to the Karnataka state exchequer. Investigations revealed that 1,471 vehicles evaded motor vehicle tax, taking advantage of loopholes and potential internal collusion.

Key Findings of the Investigation

Authorities discovered that several high-end vehicles registered in other states were operating in Karnataka without paying the mandatory road tax. Under state laws, vehicles that have been in Karnataka for more than 30 days are required to pay a one-time lifetime tax. However, the vehicles in question managed to bypass this regulation, suggesting deliberate non-compliance.

The scam came to light during an audit of records at the Bengaluru Central RTO, revealing irregularities in tax payments and discrepancies in registration documents.

Impact on State Revenue

The evasion of taxes by 1,471 vehicles has resulted in a significant revenue shortfall for the Karnataka government. The estimated loss of Rs 15 crore is seen as a blow to the state’s efforts to streamline tax collection and reduce revenue leakages.

Officials suspect that the scam could involve both vehicle owners and RTO staff, leading to calls for a thorough probe.

Government’s Response

The Transport Department has initiated measures to address the issue. Increased checks at entry points to Karnataka and stricter monitoring of vehicle registrations are being considered. Authorities are also planning to audit other RTOs in the state to ensure compliance and identify similar cases of tax evasion.

Public Reaction and Expert Opinions

The scam has sparked widespread criticism, with many urging the government to take immediate action against those involved. Experts highlight the need for robust digital systems to prevent such malpractices in the future.

The Karnataka government has reiterated its commitment to recovering the lost revenue and ensuring that such incidents do not recur, emphasizing accountability within the transport sector.

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