Govt blocks ‘Vahan’ IDs of auto dealers over pending payment

As the Transport Department moves to recover Rs 20 crore dues from around 400 auto dealers in the state, the Punjab Chapter of the Federation of Automobile Dealers’ Association (FADA) has threatened to go on strike from December 2.

In the past 20 days, the department has blocked “Vahan” IDs of almost 400 out of 1,200 auto dealers in the state after they failed to deposit the possession tax (yard tax), charged at Rs 160 per four-wheeler and Rs 40 per two-wheeler at the time of a sale of a vehicle.

Besides, some of the dealers had opened sub- dealerships without permission from the department.

Rajiv Chopra, chairperson, FADA, said the Transport Department had blocked the Vahan IDs of around 400 dealers in the past 20 days without giving any notice. This has happened twice in the recent past, he said.

“Other than harassment, the people are being forced to buy vehicles from neighbouring states, thus causing loss to exchequer. While most of the states are not charging any Vahan security fee, Punjab has been levying it since 2022. Those having the valid trade certificate should not be charged the security fee,” said Chopra.

Office of the State Transport Commissioner said, “Vahan IDs of dealers who have paid their dues or submitted their documents have been unblocked. The department has already recovered Rs 17 crore on different accounts. The issue will be resolved soon. In fact, the FADA had asked the department to check the operations of sub-dealers.”