Mumbai authorities are seizing Lamborghini & Porsche supercars: Here’s why

You send your supercar for service, and the octroi department of the Brihanmumbai Municipal Corporation (BMC) may seize it. Well, this is what has happened to a bunch of supercar owners in Mumbai, who sent their cars for service at Jubilant Performance Cars, Sewri.

A group of supercars

Why is this happening?

According to the Octroi department of the BMC, many supercar owners register their cars in other cities, where road tax is lower, and where Octroi isn’t charged. These owners. according to RTO officials, don’t re-register their cars even after driving on Mumbai roads for 12 months. This has prompted the octroi department of the BMC to go hard at such cars.

The seized supercars will be returned only after the owners of these vehicles pay the necessary Octroi, or in certain cases, the road tax as applicable for driving in the state of Maharashtra beyond 11 months. Considering that the Lamborghinis and Porsches in question cost a few crore rupees each, the octroi and road tax alone can cost up to half a crore rupees.

So, how did the Octroi department of the BMC figure out the tax evasion?

Well, a Lamborghini Huracan was crashed in Mumbai recently, and it was found that the crashed car carried a Puducherry registration. A social activist from Thane, Binu Varghese, suspected that this car had evaded duty, and registered a complaint with the RTO.

The RTO investigated Mr. Varghese’s claim and came to the conclusion that the car was registered in Puducherry by paying just 1 lakh rupees as the one time road tax, whereas the same tax amounted to about 70 lakh rupees in Mumbai.

When the car crashed in January this year, it wasn’t covered by the Puducherry registration as well, as the registration granted by that state had expired on December 18th, 2015. This led the RTO officers to the Jubilant Performance Cars workshop, where the Huracan was taken for repair.

Meanwhile, here’s the statement of the Octroi department that has seized several supercars on tax evasion charges,

We were carrying out the raid acting on information provided by the RTO officials and found that there were more than 21 cars, with registration numbers of Jharkhand and Chhattisgarh, parked in the service centre. It is unbelievable that cars being used in states like Jharkhand and Chhattisgarh are being sent to Mumbai only for servicing; we suspect that the cars are being used in Mumbai by their owners. We have sought documents and tax receipts of the Octroi duty that has to be paid to use the cars in Mumbai and without that the cars should not be released. 

Via MumbaiMirror 1 & 2

Image courtesy Team-BHP