Costly detour: Bizman's Rs 7.5 crore Ferrari dodges tax in Bengaluru, gets caught; owner fined Rs 1.42 crore

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BENGALURU: For over a year, a bright red Ferrari zipped through Bengaluru's streets, turning heads — and raising eyebrows. On Thursday, its ride came to a brief halt near Lalbagh when transport officials flagged it for allegedly dodging Karnataka's lifetime tax.

Registered in Maharashtra, the Rs 7.5 crore SF90 Stradale had been operating in the city well past the one-year limit allowed for out-of-state vehicles. The owner, a businessman, coughed up Rs 1.4 crore in tax and penalty on the same day to avoid having the car impounded.

Acting on a tip-off, Jayanagar RTO officials began tracking a Ferrari that had been spotted frequently on Bengaluru's streets. On Thursday, they found the owner had not paid Karnataka's lifetime tax.

"In Maharashtra, tax on such cars is a flat Rs 20 lakh, but in Karnataka, it amounts to nearly Rs 1.5 crore. The vehicle was registered in Maharashtra two years ago. Around 8.30am on Thursday, the driver was cruising near Lalbagh. When we stopped the car and asked for documents, he said they were at home. Later, we verified the registration," an official said.

After an investigation, RTO officials concluded that the vehicle had been used in the city for over 18 months. "As per rules, if a vehicle registered outside the state is used here for over a year, the owner must pay the applicable tax or the vehicle will be seized," the official added.

The officer said they had briefed senior authorities about the situation, who directed them to seize the Ferrari if the owner failed to comply. "Following this, the owner agreed to pay the due tax," the official confirmed.

The businessman operating across 55 locations in India had chosen to register the car in Maharashtra to benefit from the lower tax rate. "But the rules are clear," said the official. "If you use an out-of-state vehicle in Karnataka for more than a year, you are liable to pay lifetime tax here."

This isn't the first time the RTO has taken action against luxury vehicle owners flouting tax norms. In recent years, authorities have launched multiple drives in Bengaluru targeting high-end cars avoiding local taxes.

In a special drive conducted in March, the department had collected Rs 40 crore from multiple luxury vehicles registered outside the state. Officials said the present drive will continue.