Kerala sees surge in illegal rent-a-car services; over 10,000 vehicles ply without licences

Kozhikode: Illegal rent-a-car services are expanding across Kerala, with the Motor Vehicles Department (MVD) struggling to curb the practice due to weak legal provisions and enforcement challenges.

According to Transport Authority data, only 11 companies are licensed to operate rent-a-car services in the state, with a combined fleet of fewer than 3,000 vehicles. Officials estimate that more than 10,000 private cars are being rented out without the required licence.

Kerala began issuing licences to rent-a-car companies in 2015 under the Union government's 1989 Rent-a-Cab Scheme. However, the scheme does not specify penalties or punitive action against operators violating its provisions.

As a result, the MVD cannot initiate legal proceedings against unlicensed companies or their owners. Enforcement officials can only impose a small fine on vehicles found operating without a licence.

Officials say the low penalties have done little to deter violations. Given the high profit margins in the business, many operators simply pay the fine and resume operations.

Enforcement is also difficult because many illegally operated rental vehicles carry regular white registration plates, making them difficult to distinguish during roadside inspections. Licensed rent-a-car vehicles are required to display black number plates with yellow lettering.

Wedding car rentals also illegal

Hiring privately owned vintage, luxury or sports cars for weddings is also illegal if the vehicles are rented for payment without a valid rent-a-car licence.

The Motor Vehicles Department can impose penalties on both owners and users of such privately rented vehicles.

Rent-a-car licence rules

State governments issue Rent-a-Cab licences for a period of five years. To qualify, an operator must own at least 50 cars with All India Permits and maintain a minimum of five branches. Licensed rent-a-car vehicles are permitted to operate anywhere in India. Operators wishing to open branches in other states must obtain approval from the respective state's Motor Vehicles Department. For a Rent-a-Bike business, only five two-wheelers and one branch are required. Kerala has so far issued licences to around 80 rent-a-bike companies.