Allegations have surfaced against the RTO’s flying squads for irregularities in enforcement actions taken under pressure to meet revenue targets. Instead of following due process, challans were issued in the name of One Time Tax (OTT) for vehicles registered in other states. However, the collected amount was recorded as fines (compounding charges) rather than tax, creating a risk of double financial burden for vehicle owners.
An investigation revealed that nearly ₹7 crore was collected from over 300 vehicles during the financial year. Since the amount was classified as a fine instead of tax, affected vehicle owners may be required to pay the One Time Tax again if they choose to register their vehicles in the state.
Typically, departmental fines range between ₹25,000 and ₹30,000, but in several cases, amounts between ₹1,000 and ₹3 lakh were collected. These amounts were essentially OTT liabilities but were treated as penalties, meaning they may not be adjusted against future tax payments.
The issue is further complicated by a ban in place since July 2025. The High Court had prohibited the collection of One Time Tax on out-of-state vehicles unless a fresh government notification was issued. As of now, no such notification has been released.
Officials stated that verification of affected vehicle owners is underway. According to enforcement authorities, if such owners proceed with vehicle registration in Rajasthan, the collected amount may be adjusted. However, for those who do not register, the collected sum remains categorized as a penalty.
Several cases highlight the scale of the issue:
₹1.36 lakh was collected from an MP-registered vehicle, although the actual challan amount was under ₹10,000.
₹3.17 lakh was charged as compounding fees for a Chandigarh-registered car with challans totaling only ₹1,500.
₹2.50 lakh was recovered from a Gujarat vehicle against a challan of just ₹600.
₹1.19 lakh was collected from a Haryana vehicle, where the actual challan amounted to ₹25,100.
These instances indicate significant discrepancies between actual violations and the amounts recovered, raising serious concerns about procedural violations and financial impact on vehicle owners.
