Mumbai car dealers face licence cancellation over low-tax Diu registrations

A Maharashtra enforcement drive has flagged 287 luxury vehicles in three Mumbai zones after RTO officials discovered a pattern of temporary local registration followed by permanent transfer to Diu and Daman, where motor-vehicle tax is only Rs 6 lakh versus Rs 20 lakh in the state. Authorities allege 19 dealers used forged leave-and-licence documents to present buyers as residents of the Union Territory, even though the cars were delivered and driven in Maharashtra.

The dealers have been served with show-cause notices and must respond within seven days to avoid licence suspension or cancellation. The crackdown also warns owners of such cars to retain all purchase and registration paperwork, as they may be asked to settle the tax difference. The transport department plans to recover any unpaid Maharashtra taxes from affected vehicle owners.