The State Commissioner of Transport and Road Safety was ordered by a single-judge bench of the Karnataka High Court on December 16 to register the vehicles of two workers of private sector companies under the BH-Series registration. 

It was brought by Shalini T of Accenture Solutions and Ranjith K P of Fortinet Technologies India. 

The court threw out the state government's notification, dated 20.12.2021, which barred employees of private sector companies with offices in four or more Indian states or union territories from registering new non-transport cars in the BH series.

The bench remarked that the Central government has the authority to establish regulations governing vehicle registration under Section 64 of the Motor Vehicles (MV) Act. The State government is granted the authority to adopt rules under Section 65 of the MV Act in order to carry out various provisions, with the exception of those listed in Section 64.

"The power enumerated under Section 65 of the MV Act does not entitle the State to make any Rules/stipulation regarding registration of vehicles. Under the circumstances, it is clear that the Transport Authorities of the State cannot in any manner restrict the compliance in entirety of the Central Motor vehicles (twentieth Amendment) Rules, 2021 which has been issued vide notification dated 26.08.2021," said the court.

The court stated that the BH-Series registration was intended by the Indian government to avoid the time-consuming process of citizens bringing their NOC from one State, applying for a new registration mark in the other State, and then applying for a refund of taxes from the previous State of transfer to another.

"The apprehension of the State of Karnataka that the private sector employees are working on contract basis and are frequently changing from one company to another, is not a ground not to adhere to the Notification dated 26.8.2021 in its entirety. It is open to the officers/officials of the State Government to scrupulously scrutinise the documents, so that the private sector employees who opt to register their vehicles under BH-Series registration satisfy the criteria as stipulated in the Notification dated 26.8.2021."

As regards the contention of revenue loss raised by the government. the bench referred to the reply given in Lok Sabha by Minister for Road Transport and Highways, Government of India, wherein it was said that "even though the motor vehicles shall pay tax for a period of 2 years or in multiples of it, at 25% higher rate and the same being remitted to respectiveState/Union Territory on-line and hence, there is no finance loss to the State exchequer."

"The stand of the State Government in issuing inter alia notification dated 20.12.2021 specifically excluding one class of persons i.e. "employees of private sector organisations, which have their offices in four or more States/Union territories, cannot in any manner be upheld having regard to the specific mandate of law," it added.

The court additionally declared that the State government's attempt to depart from the MoRTH notification could not be upheld. 

The court granted the petitions and ordered the State Government to execute the Central MV Act (20th Amendment) Rules, 2021 regarding BH Series registration, as announced by notification dated 26.8.2021.

Case Title: Ranjith K P v. Principal Secretary To Government, Transport Department, Government of Karnataka.
Citation: WRIT PETITION NO.683 OF 2022 (MV) C/W WRIT PETITIONNO.2153 OF 2022 (MV).

Link: https://karnatakajudiciary.kar.nic.in/hckweb/casemenu.php