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Maharashtra: Transport minister orders crackdown on vehicle dealers without trade certificates

Updated on: 20 March,2025 09:39 AM IST  |  Mumbai

Maharashtra’s Transport Minister Pratap Sarnaik has ordered a special inspection drive to penalise vehicle dealers and manufacturers operating without valid trade certificates, following a complaint against Ola Electric

Maharashtra: Transport minister orders crackdown on vehicle dealers without trade certificates

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Maharashtra’s Transport Minister, Pratap Sarnaik, has directed a special inspection drive to identify and penalise vehicle dealers and manufacturers operating without valid 'Trade Certificates.' According to the Central Motor Vehicle Act and Rules, it is mandatory for vehicle distributors and manufacturers to obtain a business certificate for vehicle registration.


Under the Central Motor Vehicle Rules, 1989, every establishment, showroom, or dealership involved in the sale, trade, or display of vehicles must obtain a separate trade certificate from the registration authority. Failure to do so may result in penalties under Section 192 of the Motor Vehicle Act, 1988. 


The transport minister has instructed officials to carry out stringent inspections to ensure compliance with these regulations.


The directive follows a complaint lodged by Pritpal Singh & Associates, a Gurugram-based firm, against Ola Electric Mobility Limited. The complaint alleged that Ola Electric had obtained a single trade certificate while setting up multiple showrooms and 'store-cum-service centres' across the state. Minister Sarnaik has ordered immediate action on the complaint and requested a detailed report on the findings.

Regional Transport Offices (RTOs) in Mumbai (Central, West, and East), Borivali, and Pune have already launched special inspection drives. As part of this operation, action has been taken against 36 vehicle dealers for not holding valid trade certificates, and 34 vehicles have been seized.

Minister Sarnaik emphasised that strict action would continue to ensure that all vehicle dealers and manufacturers adhere to the trade certificate requirements, thereby improving compliance and maintaining proper registration records.

State govt proposes 6 per cent tax on EVs over Rs 30 lakh, revises motor vehicle tax structure

Earlier, Maharashtra Deputy Chief Minister and Finance Minister Ajit Pawar had on March 10 announced a series of revisions in the state's motor vehicle tax structure, aiming to generate additional revenue of Rs 1,125 crore in the 2025-26 financial year.

The proposed changes, focus on different vehicle categories, were detailed in his latest budget presentation.

The government had proposed a 6 per cent tax on electric vehicles priced more than Rs 30 lakh in the budget for the fiscal 2025-26.

Ajit Pawar had tabled the Maharashtra Budget 2025 on March 10 and announced a 1 per cent hike in the Motor Vehicle Tax on CNG and LPG vehicles.

The state government had announced to hike in the motor vehicle tax on individual-owned, non-transport CNG and LPG four-wheelers by 1 per cent. Currently, these vehicles are taxed between 7 per cent and 9 per cent, depending on the vehicle type and price. This revision is expected to bring in an additional Rs 150 crore in revenue.

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