CID probe into luxury car registration scam: Sriramulu

Transport Minister B Sriramulu said a CID probe will be ordered into irregularities in the registration of luxury vehicles and evasion of taxes causing losses in crores to the state exchequer.

Sriramulu told the Legislative Council that the matter will be handed over to the CID before the current session ends.

Sriramulu had earlier made a similar assurance in the Assembly in March.

“We are waiting for the report from the Principal Accountant General (Audit-1) and the Accountant General (A and E), Bengaluru. Based on the report, we will initiate action against those involved in the scam and it will be handed over to CID in a couple of days,” Sriramulu said.

He was replying to MLCs N Ravikumar and C N Manjegowda who sought status details of the case.

“Auditing at all the RTO offices has started based on the report submitted by Regional Transport Officers. Once we receive a report from the Accountant General, we will verify the same and hand it over to CID,” Sriramulu said. The scam, according to Sriramulu, runs into hundreds of crores. At least 226 cases have been registered against tax evaders.

The minister stated in the written reply provided to the House that some owners registered their luxury vehicles without paying the life tax. In some cases, they paid some amount to the middlemen who gave them receipts, but the amount was not reflected to the government.