Srinagar: With the government cracking its whip on non-J&K registered vehicles, hundreds of dealers and retailers of pre-owned cars in Kashmir have been left without any business, as they are finding no buyers for such vehicles.
Last week, the Jammu and Kashmir Transport department ordered re-registration of all vehicles that were registered outside J&K. As per the order, all such vehicles have to compulsorily get their vehicles registered with the transport department of J&K, only after which will they be allowed on the roads. So far, the J&K Police have seized hundreds of such vehicles across the valley.
While the crackdown against such vehicles picks up pace, the dealers and retailers selling pre-owned vehicles, many of them registered outside J&K, have been left high and dry. Usually, the demand for these vehicles remains high due to their comparatively low prices.
However, the USP of low-price tag is no longer attracting customers, given the fresh directive of the government which entails a fee of 9% on the re-registration of vehicles. The owners as well as the customers of these vehicles are thus saddled with the extra burden of paying the fee, amounting to several thousands of rupees, determined on the basis of IDV (Insurance Declared Value) of the vehicle.
Dealers and retailers of such vehicles say that the government’s order and the police’s action of seizing vehicles came without any prior warning. It has created fear in the minds of people and, as such, acted as a deterrent for buying such vehicles.
“The government’s action against non-J&K registered vehicles came as a shocker. There was no warning or any communication asking owners of such vehicles to get them re-registered with the J&K government within a certain time-period. Instead, the police started seizing such vehicles, putting people at huge inconvenience and embarrassment. This has had a major impact on our business. People are reluctant to buy such vehicles now,” Owais Mir, a car-dealer, told Kashmir Reader.
In the past few days, such vehicles have almost disappeared from Kashmir valley, as their owners are either seen lined up at different Regional Transport Offices (RTO) for re-registration process or asking dealers for required documents to pursue the registration process with the Motor Vehicles Department of J&K.
Mubashir Arif, the owner of “Deals on Wheels” in Safakadal area of Srinagar, told Kashmir Reader that the sales of pre-owned cars had plunged by almost 100% as they’d failed to sell even a single car in the past few days. This sharp fall in customers, he said, has happened due to the government’s sudden move, which has forced thousands of owners of such vehicles to shell out hefty amounts in paying 9% tax afresh.
“Our business has come to a standstill. We have no clue where we are heading towards. We used to see a good rush of customers for non-J&K registered vehicles but now with the government order, this trend has turned turtle. On average we used to sell at least one or two vehicles per day, but since the past few days, no one even talks about buying such vehicles. Our sales have fallen by almost 100 percent. We have been left without any business,” Mubashir said.
Another car-dealer based in Anantnag rued the levying of 9% tax for re-registration of non-J&K vehicles. “Why would anyone buy a vehicle when he knows that he’ll have to re-register it here by spending several thousands of rupees, starting from a minimum 20 thousand to even one lakh, depending on the condition and class of vehicle. The costlier the vehicle, the heavier the tax,” he said.
Several trade bodies and locals of Kashmir valley have expressed their dismay over the recent order issued by Regional Transport Officer, Kashmir, for re-registration of vehicles. They say that the order was issued in a hurry without taking into account the problems faced by people amidst the Covid-19 pandemic. On Wednesday, members of the Kashmir Trade Alliance held a protest at Press Enclave Srinagar demanding exemption of what they termed as “double taxation” of vehicles registered with other states. The alliance said that the authorities must revoke the arbitrary order as it amounted to sheer injustice with vehicle owners and dealers, who now have to pay the tax twice at the rate of 9 percent.
However, officials maintain that there is nothing new about the order as it already existed under Section-47 of the Motor Vehicles Act, 1988. What has happened in the past few days, the officials said, is strict compliance with the law, after years of such vehicles plying in J&K without registration in the region.
“There are clear directions with regard to re-registration of vehicles under Section-47 of Motor Vehicles Act, 1988. No vehicle can ply with the registration of other state in a particular state beyond a time period of six months. Anyone exceeding the said time-limit has to get his vehicle registered with the local RTO of his state or UT, and after obtaining proper registration, he’ll be allowed to ply their vehicle freely on the roads of that jurisdiction. The owner has to pay a tax amount of 9% with respect to the current IDV of their vehicle,” Manzoor Qureshi, Senior Inspector at RTO Anantnag, told Kashmir Reader.
He added that in the past two years, there has been a huge influx of non-J&K registered vehicles into Kashmir valley, most of which hadn’t applied for registration within the union territory of J&K. “Most of the non-J&K registered vehicles were enjoying a free ride without paying any heed to the set norms and guidelines, especially over the past two years. In order to curb this growing flouting of rules, the department had to act tough and ensure strict adherence to directions and guidelines of the Motor Vehicles Act,” Manzoor added.

KALEEM GEELANI