A four-member team from the Kerala Motor Vehicles Department is camping in Puducherry to probe tax evasion by prominent Keralites, including actors and politicians, in the purchase of luxury cars.
A team led by Assistant Secretary of State Transport Authority P.S. Santhosh on Monday met senior police officials as part of the investigation.
The issue of purchase of luxury cars by prominent personalities from Kerala became a controversy after the Kerala State Secretary of the Communist Party of India (Marxist) Kodiyeri Balakrishnan travelled in an open luxury car owned by a controversial businessman during his Janajagratha Yatra at Koduvally in Kerala.
Inquiries by the media later revealed that several film stars, politicians and businessmen had procured luxury cars from Puducherry.
Those who purchased high-end cars include actor turned BJP MP Suresh Gopi, actors Amala Paul and Fahadh Faasil.
Ambiguous proof
The Motor Vehicle Rules had a provision to register vehicles by providing proof of temporary residence. Using this provision, buyers of high end cars from other States registered their vehicle by providing their LIC policy as a temporary residential proof and availed the concessional Life Time Road Tax where the fancier the car the higher the tax benefit would be.
The provision in the rules was misused by several people from outside Union Territory to procure vehicles, especially high-end cars from here, said an official privy to the issue.
After reports surfaced, the Kerala Motor Vehicles Department had issued notice to several owners who had procured high-end cars from Puducherry.
They issued notice to owners whose cars were worth more than ₹10 lakh, sources said.
Sources said preliminary investigation by the Kerala Motor Vehicles Department had revealed that those who had procured high-end cars from here had used the same address for residential proof.
The team from Kerala has started verifying the address and other documents submitted by the owners, sources added.