The Economic Times

Rs 2 crore luxury purchase, Rs 20 lakh tax: Mumbai car dealers who saved 14 lakh with Diu and Daman registrations face licence cancellation; what about their customers?

Mumbai RTOs have issued show-cause notices to 19 car dealers over alleged fake rental agreements used to register luxury vehicles in Diu and Daman and avoid Maharashtra's higher motor vehicle tax. On a hypothetical Rs 2 crore petrol car, the tax difference could be Rs 14 lakh. The crackdown raises a practical question for customers who bought vehicles through these dealerships: could they face tax demands or registration problems?