RLA ‘benefitted’ 200 owners by delay in vehicle registration
Dushyant Singh Pundir
Chandigarh, April 20
The audit and inspection report of the Comptroller and Auditor General (CAG) of India has pointed out several discrepancies in the functioning of the Registering and Licensing Authority (RLA) from April 1, 2021, to March 31, 2022, causing a financial loss to the government exchequer.
The report has detected “irregularities” in entering the model description of high-end vehicles. During checking of records, it was noticed while in case of Ford Endeavour, the model and variant were entered/captured in the screening report, in certain cases of Toyota Fortuner, only the model i.e. ‘Fortuner’ was entered/captured and not variants such as 2.7 L 4X2 MT, 2.7 L 4X2 AT, 2.8 L 4X2 MT, 2.8 L 4X2 AT, 2.8 L 4X4 MT and 2.8 L 4X2 AT.
“From the screening reports of said vehicles, it cannot be ascertained whether or not sale amount of Fortuner has been entered correctly and road tax taken accordingly,” it pointed out, adding similar discrepancies in other models of different companies may be checked and necessary correction in the matter taken at the earliest.
Further, it was noticed 200 vehicle owners got new vehicles registered with the department after a delay of 450 days to 1,397 days. The screening reports of vehicle registration certificates (RCs) revealed the road tax was taken for 15 years from the date of purchase. In certain cases, RCs were made valid for 15 years from the date of permanent registration of vehicles and fitness was granted up to the date of validity of RCs, in contravention of the Motor Vehicles Act provisions.
“This resulted in irregular issuance of RCs and undue benefit to vehicle owners in respect of fitness period (450 days to 1,397 days) of vehicles and validity of RCs,” pointed out the report.
CAG asked the department to check similar discrepancies in issuance of RCs during the year. The department, in its reply, stated compliance would be done accordingly.
As per the Act, the registration of non-transport vehicle is valid for a period of 15 years. The validity of registration should be from the due date of registration of vehicle, not from the actual date of registration. A temporary registration number, which is required when a vehicle is yet to be assigned a permanent registration number, is valid for a period of six months.
The report further revealed the RLA failed to recover Rs 22.37 lakh as special number fee allotted through e-auction. During examination of records, it was revealed the vanity numbers were allotted to 15 bidders but they deposited only the base price of auction and the balance bid amount of Rs 22.37 lakh was not deposited for more than 132 to 398 days, which resulted in loss to the government.
The report stated the department might review similar cases and the balance amount outstanding, if any, against vanity number allotted through auction be recovered at the earliest.
It further stated there was no provision for staff to be posted at various receipt counters. The work of collecting receipts in the department was being performed by contract staff hired from the Indian Red Cross Society (IRCS).
While the department was not making any payment to the IRCS towards salary of contract staff, it paid Rs 1.97 crore to it during 2021-22 as share against the printing of smart cards. The report observed in the absence of regular staff, chances of embezzlement or misappropriation of huge amount could not be ruled out.
As per January 30, 2020, notification of the Local Government Department, UT, cow fee was to be collected by the authority concerned and given to the Municipal Corporation. The department got cow fee receipts printed and issued these to the registering dealers of Chandigarh. During checking of records for 2021-22, it was observed neither such records/receipts were maintained by the RLA nor verification conducted.
Failure to recover Rs 22.37 lakh in fee
Failed to recover Rs 22.37 lakh in fee for special numbers allotted via e-auction. 15 bidders allotted vanity numbers deposited only base price and balance bid amount was not deposited for 132 to 398 days, causing loss to government. Outstanding amount be recovered after a review of similar cases, it said.
Irregular payment to contract staff
As department staff are not allowed to be deployed at receipt counters, work is being handled by contract staff hired from Indian Red Cross Society. The dept paid society Rs 1.97 cr towards printing of smart cards, not salary of contract staff. Chances of misappropriation of funds or embezzlement can’t be ruled out.
Cars registered up to 4 years after purchase
200 owners got new vehicles registered with a delay of 450 to 1,397 days. Some RCs were made valid for 15 years from date of permanent registration and fitness was granted up to date of validity. Under norms, RC’s validity should be from due date of registration, not actual date of registration
Anomalies found in model description
In certain cases of Toyota Fortuner, only model name ‘Fortuner’ was entered in screening report, leaving out variant. “It can’t be ascertained whether or not sale amount has been entered correctly and road tax taken accordingly,” CAG report said, adding similar discrepancies in other vehicles may be checked.
