Following the launch of Dealer Point Registration System (DPS) for vehicles in 2021, there is a high suspicion of an unreasonable exorbitant amount of money charged for registration of new vehicles and other paperwork from customers by vehicle dealers.
Last September, Chief Minister N Biren had launched DPS with an objective to simplify the process of vehicle registration and other paperwork formalities that one has to follow in buying a new vehicle. With the launching of this system, autonomy was given to vehicle dealers for registration of vehicles, getting high security registration plates, smart cards and the like. The dealers have to carry out all these formalities on Parivahan Portal when customers select a vehicle and make payments.
The system was started with an aim to lessen the hassle of customers. But its objective has turned into something awry; doubt has emerged that dealers charge extra money from customers.
As per norms, a customer has to pay a one-time tax for 15 years at the time of vehicle registration, smart card. However, dealers do not inform the customers clearly about the amount and rather collect a lump-sum amount.
The amount 15 years tax differs from vehicle to vehicles; for vehicles that cost up to Rs 4 lakh, customers have to pay 4 per cent of total cost of vehicle (excluding GST); for vehicles up to 6 lakh, 5 percent of total cost of vehicle (excluding GST) is the tax amount; for vehicles up to Rs 10 lakh, 6 percent of total cost of vehicle (excluding GST) is the tax; for up to Rs 15 lakh vehicle, it is 7 percent of total cost (excluding GST) and for vehicle above Rs 15 lakh, it is 8 percent of total cost of vehicle (excluding GST).
Besides this, as per norm, customers do not need to pay for taking a high security registration plate. But dealers usually don’t share this information with customers.
According to the Ministry of Road Transport and Highways, it is mandatory for customers to apply for insurance and they are free to choose any insurance company. But it seems dealers are trying to link up the customers with their desired insurance companies. This is complete exploitation of the rights of customers. In this regard, some customers had complained to the district transport office.
As per information received from the transport department, the department is registering around 5,000 vehicles a month while charging Rs 200 for smart card. The department is also isuuing a receipt of this smart card amount and tax for 15 years to dealers to further handover to customers. But most of the customers are not receiving it. This proves that dealers are charging extra amount from customers and earning crores of money.
Due to lack of awareness, customers are being cheated. However, the concerned department hasn’t taken up any measure to create massive awareness amongst the customers in this regard. People from various corners are asking whether the department will continue to remain silent even after alleged high-level fraud practices are carried out by dealers.
