Why illegal vehicle registration charges persist in Hyderabad

HYDERABAD: Despite the introduction of the Vahan portal to curb irregularities, illegal fee collections during vehicle registration continue in the city. Automobile showrooms have emerged as centres for these practices.
The Transport Department has suspended two showrooms for allegedly collecting illegal charges in the name of the Regional Transport Authority (RTA) during permanent vehicle registration. Vehicle owners lodged complaints after being charged amounts beyond standard registration fees, prompting legal action.
However, allegations suggest that such collections continue in several other showrooms across the city. This persists despite multiple measures aimed at improving transparency in transport services.
Online system fails to stop extra collections
The government introduced the Vahan and Sarathi portals to integrate services such as vehicle registration, transfers, and driving licences at the national level. These platforms enable users to complete processes and payments online.
Every newly purchased vehicle must be registered on the Vahan portal before delivery. Fees and taxes are to be paid strictly as per the online invoice. Despite this, some dealers continue to collect additional amounts in the name of the RTA.
Registration process shifted to dealerships
The responsibility for permanent vehicle registration has been shifted from RTA offices to automobile dealers. Under the new system, vehicles are delivered with permanent registration and high-security number plates installed at the showroom itself.
Earlier, buyers had to visit RTA offices after obtaining a temporary registration. Agents and middlemen often charged extra during this process.
Now, similar practices are reported within showrooms. Dealers are allegedly collecting ₹5,000 to ₹8,000 from buyers in the name of RTA services.
Pay only invoice amount, says official
A senior RTA official said buyers should pay only the amount shown in the Vahan portal invoice and avoid any additional payments.
“Fees, taxes, vehicle cost and charges such as lifetime tax, registration, high-security number plate and speed post are clearly listed online. No extra payment should be made,” the official said.
He added that legal action would be taken against any unauthorised collections, whether in the name of add-ons or RTA services.

