In order to evade tax,many people residing in other states have been using fictitious addresses and registering luxury cars in Puducherry. This has led Lieutenant Governor Kiran Bedi to order a probe into this issue. She has also informed the Centre on this issue.
The Transport Department revealed that several film actors and businessmen from Kerala and Tamil Nadu had taken advantage of the low tax structure in Puducherry to get their luxury vehicles registered there.The Motor Vehicles Rules had a provision where vehicles could be registered by providing proof of temporary residence. Ms Bedi said that these practices are organised legal fraud.She had made a surprise inspection at the Transport Department and found these fraudulent practices. She said that till Aadhaar card is made essential for registration, the rich people would keep stealing road tax of their own states.