CPM's state secretary Kodiyeri Balakrishan finds himself in the middle of a controversy after allegations that the car he used during a reception in Koduvalli for his Jana Jagratha Yatra belonged to a hawala accused.Thiruvananthapuram/Kannur: Over 2,000 luxury cars plying in Kerala are registered outside the state evading high tax rates, especially in union territories, data showed.
The matter had come into sharp focus after CPM state secretary Kodiyeri Balakrishnan rode an open luxury car owned by a Calicut based hawala-dealer Karat Faizal during his Jan Jagratha Yatra at Koduvally.
Adding to the list is actress Amala Paul, whose Mercedes Benz S-Class bears a Puducherry registration number, reportedly registered on a fake address in the union territory.
As per rules, a car registered in Puducherry will attract much lower tax rates than those in a state like Kerala. When Kerala charges 20% of the cost of the car as tax, Puducherry charges merely Rs 1.5 lakh as a one-time tax for any car above Rs 20 lakh.
Hand in glove with authorities
Not a novel tax evasion technique by any means, the then transport commissioner Rishiraj Singh had initiated a special drive to clinch the details of luxury vehicles registered outside the state in 2013.
The department’s effort was to trace the addresses of the owners of fifty premium vehicles that were found plying the state roads with PY registration for prolonged periods.
As per reports, during the verification process, it was found out that most of the addresses used for registering the vehicles were fake.
Investigations revealed that addresses of permanent residents of Puducherry were used to register vehicles without their knowledge.
Subsequently, the transport commissioner submitted a report to the government recommending it to levy registration tax and penalty on vehicles that were registered outside the state.
However, after Rishiraj Singh was transferred to another post, the initiative fell flat, with the department’s lower rung officials turning a blind eye to the illegal practice.
Re-registration necessary
As per rules, non-Kerala registered private vehicles should be re-registered in the state within six months of their arrival in order to ply them regularly in the state.
They will also have to remit road taxes in proportion to the total cost of the vehicle. The tax remitted by the owner during the years since the original registration would be deducted from the amount.
Safe haven for tax evaders
The graded tax structure in Puducherry and Mahe is much lower compared to Kerala, making them sought after destinations for tax evaders.
As per the norms, an applicant has to submit a notary affidavit as residential proof address (permanent) in order to register his\her vehicle in a particular state.
There are touts and agents specialized in such bogus registration jobs.
MVD notice to Karat Faizal
Karat Faizal, the owner of the BMW Mini Cooper convertible, in which CPM state secretary Kodiyeri Balakrishnan traveled during the reception accorded to the left's Janajagratha Yatra at Koduvally, in Calicut, was served a notice by the motor vehicle department.
Faizal, a municipal councilor, had been accused of gold smuggling and hawala transactions.
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