City Today News

* Circular benefits a small cartel of HSRP manufacturers

* 25,000 people and their families thrown out of business.

The Notification and Circular issued by Karnataka Transport Government, which makes it mandatory to install High Security Registration Plate (HSRP) on two crore old vehicles registered prior to 1st April 2019, is not only a blatant violation of the existing rules but is also designed to benefit a small cartel of manufacturers of such plates.

The said circular issued by Transport Department violates the Central Motor Vehicle Act and Rules (CMVA and CMVR), which requires the affixation of HSRPs through only the vehicle manufacturer’s dealership network, has thrown out of business of around 25,000 people and their families engaged in selling number plates.

The circular, which was ostensibly issued in support of the provisions in Rule 50 of the CMVR, suffers from several flaws as it is framed to get back door entry of a small cartel of HSRP Manufacturers who has money power as well as political influence and to enable them to make huge profit to the tune of more than 500 Crores.

As per the existing provisions, HSRPs for old vehicles can also be supplied through registering authority, Vehicle Manufacturers (OEM) through their dealers, and original HSRP manufacturers (License Plate Manufacturers) through their dealers. It is clarified in the Rule that only OEMs can supply blank plates to their dealers. It is the responsibility of dealers of OEMs to emboss the number on such blank plates and affix the same on the vehicles. Definitely, dealers of OEMs are responsible for billing to the customer. As per Rule, License Plate Manufacturers cannot supply embossed HSRP directly to the dealers of OEMs. License Plate Manufacturers can supply HSRP in the open market only through their dealers.

But Karnataka Transport Department, by creating ambiguity that they are permitting only OEMs and their dealers to affix HSRP on old vehicles, has given back door permission to four influential HSRP manufacturers for direct supply of HSRP in the open market. Even though the Circular mandate HSRP through OEMs andy their dealers, not even a single OEM is supplying HSRP for old vehicles. Booking, payment collection, billing and supplying are being done by the said cartelized License Plate Manufacturers through their own private portals like bookmyhsrp.com and makemyhsrp.com. They have not appointed a single dealer of them for supplying HSRP for old vehicles, but supplying through dealers of OEMs, which is illegal. Transport Department permits this unjust and illegal action, while there are 23 License Plate Manufacturers who are eligible for supplying HSRP for old vehicles. It is clear from the above that Transport Department issued the circular to exclude all eligible License Plate Manufacturers except the four influential. The circular not only provided back door entry to the four influential HSRP Vendors, but also permitted them to supply HSRP without their dealership. At least livelihood of some of our members would be protected, if the circular mandated dealership of these License Plate Manufacturers, for supplying HSRP for old vehicles. But the State Government deceived 25000 families including us and thrown out our livelihood to protect interest of a small cartel, that too is from outside Karnataka. More than 1,200-crore business is solely gone to these four HSRP manufacturers. Definitely there is a scam behind this. Because these four manufacturers are selling HSRP at an exorbitant price, since all their competitors have been eliminated through the Circular.

Irregularities in Circular – Affecting Kannadiga people

In this Circular, vehicle owners in Karnataka are compelled to purchase the product exclusively from a single vendor. Despite the availability of other approved HSRP manufacturers offering the product at lower prices, Kannadiga vehicle owners are unduly limited by this Circular. This effectively infringes upon their fundamental ‘right to choose’.

Additionally, Kannadiga residents in rural areas face the burden of extensive travel to install HSRPs, as the Circular mandates consumers to visit vehicle dealerships. Due to the restrictions placed on approved vehicle manufacturers offering doorstep HSRP supply, Kannadiga residents are forced to bear the additional expense of traveling to dealerships, often surpassing the actual cost of the HSRPs themselves.

Our humble request to the Government is that they should immediately withdraw the circular, which has already thrown out the livelihood of 25000 people and their families in Karnataka and issue a fresh circular protecting the livelihood of us too. We are sure that Government can easily do this, since there is a rule provision. As per rule, dealers of License Plate Manufacturers (HSRP Vendors) can also supply HSRP for old vehicles. There are 23 License Plate Manufacturers in India. Since we have ample expertise in number plate supplying and affixing, we will definitely be considered by these License Plate Manufacturers for their dealership. Or else, the Government may impose such condition in the fresh circular.

More than 50% of our members have been in the number plate business for the past two three decades. Hence, they are unable to move on to another job at this juncture. If the circular is not withdrawn by the Government, they may end up their life. Even though the Government has no concern about the life of common people, we are responsible for protecting their life. If the Government will not withdraw the circular immediately, we along with our families will be forced to protest against this. In fact, hunger strike will be more convenient to us, as we have no income to feed our families.

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