Ministry of Road Transport and Highways of India loss of Rs. 1.82 crore, due to vehicles plying without a permit.

Permit fee, application fees, and penalty amounting to Rs. 1.82 crore was not realized from 1,960 vehicles plying on roads without renewal of a permit.

Under the MV Act, 1988, a permit other than a temporary permit shall be effective for a period of five years and no owner of a motor vehicle shall use or permit the use of the vehicle as a transport vehicle in any public place without a permit. UPMVT Rules prescribed rates for the issue of new permits and their renewal and application fees. Further plying a vehicle without a permit is compoundable under the MV Act, at the rate of Rs. 5,000.

Audit test-checked the records of 11 RTOs and noticed (between December 2019 and February 2020) that 1,960 out of 14,127 vehicles (contract carriage, auto/three-wheeler, stage carriage, school vehicles, tanker, and goods vehicles) plied on-road (between April 2017 and January 2020) even after expiry of the validity period of the permit. Information such as the expiry of permit validity was available in the VAHAN database. In spite of this, these cases were not detected by the Department. Also, vehicle owners had not applied for a refund of tax and not surrendered the certificate of registration for non-use of vehicles. The RTOs/ARTOs also did not initiate any action to issue notices to these permit holders. As a result, permit fees, application fees, and penalties amounting to Rs. 1.82 crore was not realized.

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