Thiruvananthapuram: A subject specific compliance audit (SSCA) carried out by comptroller and auditor general at the regional transport offices and state transport authority in the motor vehicle department flagged non-regulation of rent-a-cab services in the state.According to central govt notification, the operators of rent-a-cab must maintain a fleet of at least 50 motor cabs, each holding an all-India tourist permit and must obtain a licence by paying a prescribed fee of Rs 5,000 to state transport authority (STA).“As such, a registered motor cab cannot be rented out to another person unless the operator obtained a licence under the rent-a-cab scheme. Scrutiny of the records available with STA shows that only nine rent-a-cab licences had been issued in the state by it,” report said. However, data retrieved from GST portal showed that, as on March 31, 2024, there were 461 agencies registered as rent-a-cab operators in the state.Audit noticed that these agencies regularly filed GST returns without obtaining the required licence from STA. Audit observed that lack of enforcement mechanism to identify operators resulted in unlicensed firms providing services in the state,’’ the report tabled in the assembly said.Further, audit test checked the GST returns filed by 50 of these operators and found that 25 of them filed annual returns. The total annual turnover of 25 operators comes to Rs 120.35 crore. The discrepancy between licensed operators and GST-registered agencies highlights a critical gap in the enforcement of the rent-a-cab scheme, 1989, it said.Audit observed that the department-initiated modernisation efforts by setting up nine automated driving test tracks (ADTT) and nine automated testing stations (ATS) aimed at improving transparency and minimising human intervention. However, despite incurring Rs 37.48 crore, only two ADTTs became functional, while none of the ATSs was operational, resulting in continued dependence on manual licensing and testing.
