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Bengaluru is famous for its high-leading lifestyle and some of the most expensive car garages in the country. However, the sound of revving engines has been replaced by the hum of flatbed tow trucks lately. In a massive crackdown in February 2026, the Bengaluru Transport Department has seized over 30 luxury cars plying on the roads without paying road taxes and with fake registrations.

From the quiet neighborhood of Basavanagudi to the posh apartment basements in Sahakarnagar, no parking lot was out of bounds for RTO officials who were on a mission to retrieve crores of lost revenue.

The crackdown, headed by Deputy Commissioner of Transport C. Mallikarjun and a team of 41 officers, focused on luxury brands such as Ferrari, Lamborghini, Porsche, Bentley, and Rolls-Royce.

The crackdown was no ordinary checkpost raid. It was a carefully planned hunt:

The "Other-State" Loophole: 

The majority of the seized vehicles were registered in tax-friendly states such as Puducherry, Jharkhand, and Maharashtra, although they were permanently stationed in Bengaluru.

Fake Documents: 

In a surprising twist, some of the owners, including a high-profile case involving a Lamborghini Huracan Evo, were discovered to have used forged documents to dodge a staggering ₹37 lakh in local taxes.

Basement Raids: 

For the first time, RTO officials conducted "Surprise Inspections" at luxury apartment complexes to track down vehicles that had been secretly stored away to avoid seizure.

The 2026 crackdown has brought to light two significant methods of which the "one-percent" use to evade the payment of Karnataka's road tax, which is one of the highest in India:

The Abuse of the 11-Month Rule: According to the Motor Vehicles Act, a vehicle can operate in another state for 11 months. Many owners have been found to "re-set" the clock on paper without actually moving the vehicle, or simply not bother with re-registration at all.

Undervaluation: With the help of fake bills, some owners have been found to undervalue their multi-crore vehicles at the time of registration, thus "defrauding" the state of its 18%–21% road tax exemption.

Although the RTO's action has been welcomed by many as "tax justice," it has not been without its share of controversy. In mid-February, the Karnataka High Court expressed its reservations about the manner in which some officials had accessed private residential garages at night to seize vehicles without prior notice.

"Even in cases of suspected tax evasion, authorities must strictly follow due process. Arbitrary action will not be upheld." — High Court of Karnataka (Feb 2026).

Notwithstanding the legal controversy surrounding the manner of seizure, the message is clear: Tax compliance is no longer optional for the elite.

Quick Stats of the 2026 Drive

Statistic

Detail

Total Vehicles Seized

30+ Luxury Cars

Brands Involved

Ferrari, Lamborghini, Rolls-Royce, Bentley, Porsche

Estimated Tax Recovery

Over ₹3 Crore

Highest Individual Tax Fine

₹61.9 Lakh (Jharkhand-registered Ferrari)

Number of Officers

41 RTO Officials

If you are driving an out-of-state car in Bengaluru, the "honeymoon period" is officially over. The RTO has indicated that it will continue its "Operation Suraksha" and extend its search to IT parks and tech hubs.

To avoid having your car seized, you must:

Get an NOC from your home state.

Pay the pro-rata Lifetime Tax (LTT) at a Bengaluru RTO.

Make sure all your bills and documents are genuine and traceable through the Vahan portal.

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