MUMBAI: The state transport department has flagged 475 vehicles registered outside Maharashtra during its special inspection drive aimed at uncovering vehicles used in the state but registered outside to potentially evade higher motor vehicle taxes. The drive, conducted from October 5 to October 17, probed 6,408 vehicles across the Mumbai Metropolitan Region, Pune, Pimpri-Chinchwad, Nashik and other places. So far, 12 vehicles have been seized and ₹24.09 lakh collected in fines.

The action follows the department’s identification of 5,664 vehicles worth over ₹50 lakh each which were sold by dealers in Maharashtra during FY 2025-26 but registered in other states and union territories. The list includes luxury brands such as Lamborghini, Jaguar, McLaren, Tesla and Sany and vehicle types from cars, sports cars and buses to trucks, cranes, excavators and other heavy vehicles. Several of these were registered in Gujarat, Daman and Diu, and Puducherry but were found operating in Mumbai, Thane and Pune.
Officials suspect that some owners, despite using their vehicles primarily within Maharashtra, may have registered them in other states to take advantage of the lower taxes there. “We checked the vehicle registration records, toll records and CCTV footage to establish how long the suspected vehicles have been operating in the state,” said an RTO official. “Explanations will be sought from all those vehicle owners who could not prove their place of residence or work outside Maharashtra.”
The inspection teams, comprising four officers at each RTO, verified details provided by dealers, checked owners’ addresses and examined the documents submitted to obtain temporary registration certificates and number plates in Maharashtra in order to ascertain whether the address proofs submitted complied with Rule 4 of the Central Motor Vehicles Rules, 1989. Under this, owners are required to establish that they have a valid residential or business address in the state or union territory where their vehicles are registered.
{{/usCountry}}The inspection teams, comprising four officers at each RTO, verified details provided by dealers, checked owners’ addresses and examined the documents submitted to obtain temporary registration certificates and number plates in Maharashtra in order to ascertain whether the address proofs submitted complied with Rule 4 of the Central Motor Vehicles Rules, 1989. Under this, owners are required to establish that they have a valid residential or business address in the state or union territory where their vehicles are registered.
{{/usCountry}}“Where irregularities are found, detailed inquiries will be conducted and reports submitted to the department. What is more serious is that vehicle dealers here are allegedly convincing owners to register them elsewhere to save taxes,” said a senior transport department official.
The issue also extends to construction equipment. Cranes and excavators, previously taxed according to weight, are now taxed based on their value. Officials said that registration in neighbouring states, where taxes are around 3% as opposed to Maharashtra’s approximately 10%, could offer substantial savings.
Under Section 47 of the Motor Vehicles Act, 1988, a vehicle registered in one state and kept in another for more than 12 months must be re-registered in the latter state and the applicable taxes paid. Owners who established valid reasons for out-of-state registration were let off.
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