Government warns car dealers of excessive fees for customers | News from Bhubaneswar

Bhubaneswar: The government has warned car dealers against harsh measures if they overcharge customers when buying new vehicles. The State Transportation Authority (STA) has directed regional transportation officials (RTOs) to take appropriate legal action against the misguided traders to suspend their trade permits.
“It has been found that some dealers charge buyers an amount in excess of the cost of the vehicle. The excess will be collected under the guise of allowable taxes on processing fees, registration costs and extended warranty fees,” read the STA circular, which was sent by state transport commissioner Arun Bothra.
From January 1 this year, the government began issuing driver’s license (DL) and vehicle registration certificates (RC) in digital mode, scrapping the previous practice of giving customers physical smart cards DL and paper-based vehicle registration certificates. As a result, the registration fees paid by buyers have been reduced from Rs 282 to Rs 140. However, some merchants have not yet passed this benefit on to customers and continue to charge the former fee.
“The government only collects registration and tax amount for new vehicles. The traders should also only charge this amount. You cannot take anything extra. If they need to charge an amount for a value-added service, a proper receipt must be issued for it,” the circular reads.
The regulation states that dealers are required to post the buyer’s payment details for each vehicle category on a notice board in a prominent place in their showrooms.

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