Collection Of Excess Amount By Dealers: Odisha STA Warns Of Action, RTOs To Submit Compliance Report

Taking note of the alleged collection of excess amount over and above the price of vehicles from customers by unscrupulous dealers, the State Transport Authority (STA) on Thursday issued fresh guidelines which will be strictly enforced by the Regional Transport Officers (RTOs) in Odisha to curb the practice.

The STA has directed the RTOs to ensure that all the dealers display details of payment to be made by purchaser for each category of vehicles on a notice board at their showrooms. It should be mentioned on the board that no extra payment need to be made other than what is mentioned on the display board.

The move comes in the backdrop of allegations that some dealers were charging extra amount from the purchaser of new vehicles over and above the price of vehicles. This includes, admissible taxes towards handling charges, registration express, charges for extended warranty.

Though fees for the registration of vehicles payable by purchaser has been reduced from Rs 282 to Rs 140 (vide Commerce 8 Transport (Transport) Department Notification No 10900/T dated 21 12.2021), some dealers are not passing on this benefit to the customers and continue to charge the earlier fee amount.

The State Transport Authority has now instructed all RTOs to convene meetings of the automobile dealers under their respective jurisdiction and advise them to refrain from charging excess money from the buyers.

Details:

- All the charges, whether essential or optional, must be clearly mentioned on the display board. For all charges so taken the dealer must issue a receipt.

- Similar procedure shall be adopted by the dealers while issuing quotations.

- The dealer cannot force the purchaser to get the vehicle insured with him.

- The RTOs will inspect all automobile showrooms to ensure that they have complied with the above instructions on notice board/display board. -

RTOs will send a compliance report within two weeks. In case of any violation, appropriate action must be taken as per law against errant dealers for suspension/ cancellation of their Trade Certificate, the notification read.