Chandigarh, November 29
The Punjab government has intensified efforts to recover ₹7.85 crore in possession tax arrears from defaulting motor vehicle dealers, Transport Minister Laljit Singh Bhullar said on Friday. To enforce compliance with Rule 40 of the Central Motor Vehicle Rules (CMVR) 1989, the Transport Department temporarily deactivated the VAHAN portal User IDs of defaulting dealers. Bhullar highlighted that repeated audit objections and overdue recoveries demanded immediate action, following a similar drive in 2022 that involved notices and suspensions. Despite renewed warnings in 2023, many dealers failed to meet their obligations.
State Transport Commissioner Jaspreet Singh revealed that the Federation of Automobile Dealers Associations (FADA) flagged concerns over unregistered sub-dealers, prompting an inquiry that led to additional suspensions. FADA also proposed a “One GST, One VAHAN” policy to streamline dealer registration and suggested bringing second-hand vehicle sales under stricter regulation per MoRTH’s G.S.R. 901(E) notification.
During a Public Accounts Committee meeting on November 27, officials were directed to recover all tax dues up to FY 2023-24 within a month, with disciplinary action threatened against non-compliant RTOs and RTAs.
To date, the department has retrieved ₹4.15 crore from identified arrears and ₹13.07 crore for the period since 2017-18. Dealers who complied with all statutory requirements have been reinstated on the VAHAN portal. The department urged all motor vehicle dealers to adhere to regulations to avoid operational disruptions.
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