EV Owner Forced to Pay Road Tax Due to System Error in Nagpur
The government’s promises were clear: EVs would be exempt from road tax and, in some states, even tolls. For many EV owners, these incentives made the higher upfront cost of her EV feel justified. Radhika Abhishek Kabra too had believed the same. But in April 2025, her faith in the system was put to the test.
The Unexpected Demand
It was an ordinary morning when Radhika received an SMS from the Regional Transport Office (RTO) in Nagpur. The message was blunt: her EV, registered as MH20FU1355, owed road tax for a period stretching from 2021 to 2025. The warning was stern—pay immediately or face the risk of having the vehicle seized under the Maharashtra Motor Vehicles Tax Act. For a law-abiding citizen who had completed all formalities at the time of purchase, this must have been both confusing and distressing.
Radhika’s first instinct was to contact her dealer, who reassured her that all dues had been settled and that, as per government policy, EVs were indeed exempt from road tax. Still, the official system showed a “pending tax record,” and RTO officials insisted on payment. The threat of vehicle seizure loomed large, leaving her with little choice but to comply. She paid a total of ₹3,552—₹2,400 as tax and ₹1,152 as penalty for a delay that never occurred.
The Blunder Unveiled
As it turned out, Radhika was not alone. The RTO, in an attempt to remind Bharat (BH) series vehicle owners about their biennial tax obligations, had outsourced the messaging task to a third-party agency. A technical error led to EV owners being wrongly included in the bulk SMS campaign. The RTO later admitted the mistake, promising to clarify the situation and explore ways to refund the wrongly collected money. But for Radhika, the damage—both financial and emotional—was already done.
A Systemic Problem, Not an Isolated Incident
This incident is not just about one owner or one city. As India accelerates its push towards electric mobility, such administrative lapses threaten to undermine the very incentives designed to encourage EV adoption. While Maharashtra, Telangana, Gujarat, Tamil Nadu, and Kerala have offered various exemptions and incentives for EV owners—including waivers on road tax and registration fees—implementation on the ground remains patchy.
Recent policy proposals in Maharashtra, for instance, aim to exempt EVs from paying tolls on major expressways like the Mumbai-Nagpur Samruddhi Expressway and the Mumbai-Pune Expressway. These moves are intended to make EVs more attractive and affordable, especially since they are typically 30% more expensive than their petrol or diesel counterparts. However, as Radhika’s story shows, the gap between policy and practice can be wide.
The Buyer’s Dilemma: Trust and Transparency
For buyers, the promise of lower running costs and government-backed incentives is a major draw. But stories like Radhika’s raise uncomfortable questions: What recourse does an EV owner have when the system fails? With no centralised grievance redressal mechanism, many may simply pay up rather than risk losing access to their vehicles. Forums like Team-BHP are filled with anecdotes from owners facing similar bureaucratic hurdles—be it at toll booths, RTO offices, or during routine checks.
Lessons for All Stakeholders
Radhika’s ordeal is a wake-up call for policymakers, administrators, and buyers alike. For India’s EV mission to succeed, the systems supporting it must be robust, transparent, and responsive. Administrative errors, however unintentional, can erode public trust and slow down the transition to cleaner mobility.
As the government continues to roll out new incentives and policies, the onus is on authorities to ensure that the benefits reach the intended recipients—without hassle or confusion. For now, EV owners like Radhika can only hope that their commitment to a greener future is matched by a system that truly supports them, every step of the way.