Karnataka transport department seizes 30 luxury cars in a crackdown on tax evasion

Karnataka Transport Department seizes luxury cars in tax evasion crackdown, recovers ₹3 crore in unpaid taxes. Stricter enforcement ahead.

In a major crackdown on tax evasion, the Karnataka Transport Department launched a special drive to identify luxury car owners who haven’t paid road taxes. During a single-day operation recently, officials seized 30 high-end cars and recovered approximately ₹3 crore in unpaid taxes.

Deputy Transport Commissioner C. Mallikarjun, who led the operation along with a team of 41 officials, said, “Luxury car owners have been found evading taxes, hence on Sunday (February 2, 2025) we conducted an operation. Some vehicles were registered outside Karnataka, while others had only partially paid their taxes or completely avoided them. Our department is committed to ensuring compliance, and we have issued recovery notices for the seized vehicles.”

Another senior transport official highlighted that tax evasion among luxury car owners has been a growing issue in Karnataka. “Vehicle owners are found to be misusing loopholes in the system. Many owners register their high-end cars in other States to bypass Karnataka’s higher road tax but continue to use them here. This not only results in revenue loss but is also illegal,” the official said.

The crackdown is part of the department’s ongoing efforts to address tax fraud, especially among premium vehicle owners.

With multiple instances of tax evasion coming to light, transport officials have warned of stricter enforcement in the coming weeks. “Owners of vehicles found violating tax rules will face penalties and legal action,” official added.