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This is an archive article published on January 6, 2024

Vehicle owner alleges number plate scam worth Rs 700 crore, approaches Karnataka Lokayukta

The complainant claims that HSRP (High Security Registration Plate) manufacturers supply the number plates to the vehicle manufacturers at Rs 519 for four-wheelers and Rs 236 for two-wheelers.

karnataka vehicleThe Transport department of Karnataka has also extended the deadline of affixing the HSRPs to February 17, 2024, owing to the poor registrations and the ongoing legal battle in the Karnataka High Court between the Transport department and the High Security Registration Plate Manufacturers Association of India. (Representational image/File)

A vehicle owner has filed a complaint with the Karnataka Lokayukta on Wednesday alleging an HSRP (High Security Registration Plate) scam to the tune of Rs 700 crore. He said HSRP manufacturers are charging vehicle owners more than what they charge manufacturers and dealers.

An HSRP, a flagship project of the Union Ministry of Road Transport and Highways (MoRTH), is an aluminium number plate that is fixed onto a vehicle by a minimum of two non-reusable snap-on locks and has various identifiable features.

According to the complaint copy accessed by The Indian Express, the HSRPs for four-wheelers cost Rs 778 and Rs 525 for two-wheelers which is collected by the HSRP manufacturers through a website link facilitated by the Karnataka Transport department.

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However, the complainant claims that HSRP manufacturers supply the number plates to the vehicle manufacturers at Rs 519 for four-wheelers and Rs 236 for two-wheelers.

Karnataka vehicles scam According to the complaint copy accessed by The Indian Express, the HSRPs for four-wheelers cost Rs 778 and Rs 525 for two-wheelers which is collected by the HSRP manufacturers through a website link facilitated by the Karnataka Transport department.

The complainant also alleged, “The Transport department has illegally exerted pressure on the general public to purchase HSRPs at an exorbitant price.”

He further said that on January 1, 2023, the four HSRP manufacturers had quoted prices which were lesser than what they are now. In fact, the cost of an HSRP for an individual car owner was less than what the manufacturers had announced for vehicle manufacturers.

hrscp The complainant also alleged, “The Transport department has illegally exerted pressure on the general public to purchase HSRPs at an exorbitant price.”

However, the complainant added, “After knowing the fact that the product was being supplied at a lesser price, the government permitted certain HSRP manufacturers to collect exorbitant amounts, thereby leading to a corruption of more than Rs 700 crore.”

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The complainant also said that as per Rule 50 of the Central Motor Vehicles Rules, 1989, and Clause 4 to 6 of the Motor Vehicles (High Security Registration Plates) Order, 2018, the fitment of HSRPs shall be carried out in the premises of the dealers of the vehicle manufacturers and the dealers shall provide sufficient infrastructure for fitment of HSRPs.

However, he alleged that the Transport department has flouted the rules by permitting the HSRP manufacturers to carry out the fitment of HSRPs outside the premises of the dealers, leading to security issues.

The complainant also accused the government of permitting HSRP manufacturers to collect additional charges as per “whims and fancies” and the transport officials of tampering with the website of the Transport department by providing a link in the website to redirect users to the websites of the HSRP manufacturers.

FTA It has been made mandatory to fix HRSPs on vehicles registered before 2019, so that the old number plates are not tampered with and misused by vehicle thieves.

It has been made mandatory to fix HRSPs on vehicles registered before 2019, so that the old number plates are not tampered with and misused by vehicle thieves. Around 2 crore vehicles have been registered before 2019 in Karnataka.

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The Transport department of Karnataka has also extended the deadline of affixing the HSRPs to February 17, 2024, owing to the poor registrations and the ongoing legal battle in the Karnataka High Court between the Transport department and the High Security Registration Plate Manufacturers Association of India.

The Karnataka Transport department has challenged the single bench order of the Karnataka High Court, that directed the state government to include all HSRP manufacturers to affix HSRPs, citing contradiction from the central government notification on HSRP affixation rules.

The Karnataka High Court in October had ordered a partial pause on an earlier single bench order directing the implementation of approval processes for high-security vehicle registration plate manufacturers.

In the original order, the petitioners, High Security Registration Plate Manufacturers Association of India, had challenged the state government notification issued on August 17 and 18, which had ordered that high-security plates from manufacturers authorised by vehicle manufacturers shall be supplied and attached by original dealers.

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It has been alleged that the Karnataka government is favouring just a few dealers as opposed to the 20 recognised dealers by the central government. Karnataka Vehicle Number Plate Manufacturers & Sellers Association alleged that the monopoly of certain dealers in providing HSRPs would destroy the livelihood of over 25,000 families in Karnataka who are employed in the licensing industry and deprive customers of availing different vendors at competitive prices.

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