Composite and authorization fees amounting to Rs. 3.28 crore was not realized from 1,875 goods vehicles plying on roads without renewal of authorization of national permit.
Under the MV Act, 1988, a permit other than a temporary permit shall be effective for a period of five years. As per CMV Rules, authorization for National Permit is for one year. As per orders of the Transport Commissioner (February 2000), the authorities concerned shall issue notice to the permit holder within 15 days of the expiry of authorization calling for his explanation as to why the permit should not be canceled in case of non-renewal of authorization and cancel the permit in case no explanation is received within the prescribed time. A composite fee of Rs. 16,50014 per annum for authorization along with an application fee amounting to Rs. 1,000 was to be deposited in the Government account for authorization of a national permit.
Audit test-checked the records of 12 RTOs and noticed (between December 2019 and February 2020) that 1,875 out of 6,949 goods vehicles, covered under national permit plied on-road (between January 2018 and January 2020) without renewal of authorization of national permit even after expiry of the validity period. All information such as date of expiry of authorization, tax paid, and other details of the vehicle with a national permit was available in the VAHAN database. In spite of this, these cases were not detected by the Department. The RTOs also did not initiate any action to issue notices to these permit holders and cancel the permit. As a result, composite fee and authorization fee amounting to Rs. 3.28 crore was not realized.