CHENNAI: New two-wheeler buyers in Tamil Nadu can now save between Rs 1,500 and Rs 2,500, while car buyers may save up to Rs 5,000 — charges that were until now collected as “RTO fees”, often alleged to be bribes paid during vehicle registration.
After initially refusing to implement the union government’s directive to exempt new vehicles from physical inspection at RTOs for five years, the Tamil Nadu transport department has approved dealer-point registration for non-transport vehicles — two-wheelers, cars and jeeps — with effect from Monday.
This means new vehicles no longer need to be physically presented before Motor Vehicle Inspectors for registration. To this effect, Transport Commissioner R Gajalakshmi issued a circular to All Regional Transport Officers and Motor Vehicle Inspector offices in the state.
The directive ordered officials not to insist for physical verification of the fully built vehicles for registration at RTO offices and to implement the rule 48 B of the Central Motor Vehicle rules, 1989. A majority of states have already implemented this policy since 2021.
“After deciding the owner of the vehicle, the dealer shall apply through VAHAN portal to the registering authority by uploading the manufacturer invoice duly attested by the inspecting authority and necessary documents. RTOs shall verify and approve the application made by the dealer for registration and further assigning registration number,” said Gajalakshmi.
As per VAHAN database, on an average 5,800 vehicles registered per day at 91 RTOs and 46 Motor Vehicles Unit offices in Tamil Nadu, of which more than 4,800 (80%) are two wheelers.
Dealers will complete the registration process by entering the chassis and engine details into the VAHAN portal, and the smart card registration certificate will be delivered to the buyer’s residence via Speed Post, said an order issued by the transport commissioner.
The move follows a Madras High Court’s common order issued in 2024 on a petition filed by the Federation of Automobile Dealers Association (FADA), New Delhi.
The state government’s appeal challenging the high court order was dismissed by the Supreme Court a few months ago. Subsequently, in October this year, the Madras High Court set a deadline for implementing its earlier order issued in 2024.
When new vehicle buyers refuse to pay the additional “RTO charges”, automobile dealers often justify the fee by claiming it covers fuel costs, driver allowances, staff deployment for inspections, and other miscellaneous expenses.