Under what norms registration numbers are being auctioned: HC

The High Court also raised a question mark over the imposition of high additional registration fees by the authorities.

Asserting that matters relating to charging of fees and taxation need to be taken strictly in consonance with provisions of law,the Punjab and Haryana High Court on Thursday questioned under what provision of law auctions of vehicle registration numbers were being held.

The High Court also raised a question mark over the imposition of high additional registration fees by the authorities. Referring to the Motor Vehicle Act,1988,a division bench observed that there was no provision under the said Act which mandates holding of such auctions.

The court remarked that state governments and Union Territories had no right to alter,enhance or charge addition registration fees and that it fell in the exclusive domain of the Central government to take such decisions.

Story continues below this ad

Raising eyebrows over the auctions of fancy numbers held by the Chandigarh Administration and neighbouring states of Punjab and Haryana,the High Court observed that there was no provision in the Motor Vehicle Act which provided a legal stamp to charging of additional fees by the state governments or holding auctions.

If at all such auctions are to be held and additional fees are to be charged,the High Court remarked,the Central government has to make a provision for the same. The court suggested that the administration should approach the Central government for the said provision.

The development took place during the resumed hearing of a public interest litigation (PIL) seeking the quashing of illegal auction of vehicle registration numbers and imposition of high additional registration fees in the name of tax under an antiquated 1924 state law.

Filed by Hemant Goswami,the PIL stated that the state governments were charging about Rs 5 lakh or more for allotting special registration numbers.

Story continues below this ad

The petitioner had challenged notifications on the sale of the registration numbers and levy of high fee on the grounds that as per the constitutional provisions,the imposition of registration fee/tax comes within the domain of legislature and the executive cannot assume the authority of legislature by an executive act to impose registration fee/taxes by issuing notifications devoid of the force of law. As far as notification by Haryana is concerned,it is unsustainable and untenable as the state government is not competent to impose additional fee for each number as per the provisions of Section 65 of the Motor Vehicle Act,1988.

It was contended that in a similar matter decided by the Madhya Pradesh High Court in 2008,the court had held that vehicle registration numbers could not be sold by the state government. Only the Centre was competent to levy or enhance registration fee on vehicles.

After hearing arguments of all the parties,the High Court reserved its final orders on the petition.

Stay updated with the latest - Click here to follow us on Instagram