Commercial use of pvt cars may draw suspension of RCs

Bengaluru: The transport department issued a stern warning to private vehicle owners who attach their cars with unauthorised mobile app-based rental services. Officials said using private vehicles (white board) for commercial purposes can result in hefty fines and regional transport offices (RTOs) could suspend vehicle registration certificates for 3-4 months.
During a recent enforcement drive, RTOs in Bengaluru seized seven personal vehicles attached to Long Drive, a car rental aggregator. Officials said Long Drive operations are illegal in the city. Taxi unions have consistently demanded action against such illegal rental services using cars registered for private purposes, which affect their livelihood.
Transport commissioner Yogeesh AM told TOI that professionals and others connect their white board vehicles with illegal operators for financial benefits. “White board vehicles cannot be used for commercial purposes and are against provisions of Motor Vehicles Act. There are provisions to impound vehicles and depending on the gravity of the case, registration certificates can be suspended for 3-4 months. During suspension of RCs, owners will not be in a position to use their vehicles.”
Additional commissioner (enforcement) C Mallikarjuna explained that illegal aggregators attract private car owners with various incentives. “Some mobile app-based operators offer initial incentives of Rs 1 lakh to Rs 2 lakh to owners, depending on the type of vehicle attached. The owners also get payment depending on days for which vehicles are attached, and this varies with the type of vehicle too. Operators provide these cars on rental basis to their customers. There are many working professionals who attach these vehicles for monetary gain. It is said 9-10 illegal operators are actively involved in this business, and many of them operate outside the state.”

He noted that RTOs have identified about 25 vehicles linked to Long Drive, operating from Hyderabad, which reportedly ceased operations following repeated enforcement actions. “After impounding the vehicles, we approach the court. There are instances of the court imposing penalty of Rs 10,000 to Rs 15,000 depending on violations,” the official said.
Unions not happy
Despite the department’s strict stance, unions are not satisfied with the enforcement efforts. Nataraj Sharma, president of Federation of Karnataka State Private Transport Association, said, “Yellow board taxi drivers pay quarterly tax from Rs 6,500 to Rs 18,000, depending on the type of vehicle, seating capacity and cost. On the other hand, owners of private cars allow illegal use of their vehicles without paying anything to the govt to make extra revenue. There is an urgent need to curtail this illegal business that also results in tax loss for the exchequer.”
BLURB
RTOs in Bengaluru seized seven vehicles attached to a rental aggregator. Officials say professionals and others connect their white board vehicles with illegal operators for financial benefits. Taxi unions have consistently demanded action against illegal rental services using cars registered for private purposes, which why say, affect their livelihood.