The Customs Department’s Operation Numkhor, launched on September 23, has drawn nationwide attention for uncovering a racket involving high-value pre-owned vehicles allegedly smuggled from Bhutan. The operation, which has significant security and economic implications, led to raids across multiple states, including at the residences of actors in Kerala.

Authorities initially seized 37 vehicles, some of which were later returned after verification. The Directorate of Enforcement (ED) has also begun its own inquiry into the case, tracing the networks suspected of orchestrating the illegal vehicle imports.

Amid growing scrutiny over vehicle origins and registration, the Kerala Motor Vehicles Department (MVD) released a video advisory clarifying taxation requirements for all foreign-registered vehicles, including those brought in by Non-Resident Indians (NRIs).

The department stressed that all such vehicles, regardless of size or duration of stay, must pay state tax under the Kerala Motor Vehicle Taxation Act. The directive affects many NRIs and visitors who temporarily use their vehicles in Kerala.

Taxation structure and compliance

The MVD outlined a two-tiered payment system for temporary use within Kerala:

  • First month: ₹10,000 mandatory tax.
  • Subsequent months: ₹5,000 per month.

To comply, vehicle owners must present the vehicle documents at the Regional Transport Office (RTO), where they will receive a unique ID and password to make the tax payment online.

Warning against non-compliance

The MVD has cautioned that failure to meet tax obligations could lead to penalties. The rule applies uniformly to all foreign or NRI-owned vehicles operating in the state.