Luxury Car Tax Crackdown in India: Bengaluru Ferrari Owner Pays Hefty Sum
In a significant enforcement of tax regulations, a Ferrari owner in Bengaluru has been compelled to pay ₹14.2 million in taxes and penalties for operating a luxury vehicle without complying with local tax laws. The Ferrari SF90 Stradale, valued at ₹75 million, was registered in Maharashtra but had been in use in Bengaluru for over 18 months, exceeding the permitted period for out-of-state vehicles.
Transport officials in Bengaluru flagged the vehicle for violating Karnataka’s lifetime road tax regulations. Upon verification, it was found that no local tax had been paid, prompting the Bengaluru South Regional Transport Office (RTO) to issue a notice warning of possible seizure and legal action. To avoid these consequences, the owner, a businessman with operations in 55 Indian cities, promptly paid the due amount.
This incident is part of a broader crackdown on luxury car tax evasion in Karnataka. In February, authorities seized 30 luxury vehicles, including Ferraris, Porsches, and Range Rovers, for unpaid taxes, recovering tens of millions of rupees. The RTO official noted that this is among the largest single-vehicle tax recoveries in recent times and that enforcement against luxury car tax evasion will continue.
Under the Motor Vehicles Act, vehicles registered outside Karnataka but used in the state for more than 12 months are required to pay lifetime road tax. Authorities have clarified that tax must be paid regardless of where the vehicle is registered if it is driven in Karnataka beyond the allowed period. This crackdown is expected to continue, with several suspected violators already under watch.
The Bengaluru case mirrors a similar operation in Hyderabad in 2021, where 11 luxury cars were seized for tax violations, generating significant revenue for the Hyderabad RTA. Karnataka’s strategy to tackle road tax evasion among luxury vehicle owners has already yielded results, with a similar enforcement campaign in March bringing in over ₹400 million in unpaid taxes.
