Hyderabad: Nearly 15,000 cabs belonging to city-based drivers have been seized by banks and financiers in the past three months because of loans-related dues. The seizure of taxis by financial institutions is related to a scam which came to light last year when the vigilance department found illegally-registered taxis plying in other districts.

The vigilance wing identified more than 15,000 such illegal registrations with fake address proofs submitted by drivers and it has collected information of about 7,500 cabs during field visits based on the address proofs submitted at the time the vehicle was registered, between 2010 and 2014.

The government had banned the registration of BS-III (Bharat Stage III, an emission standard) cars in Greater Hyderabad Municipal Corporation limits in 2005 in order to reduce air pollution. Only BS-IV category cars were allowed to be registered. And as there was a huge difference in price between BS-III and BS-IV vehicles, cab drivers were encouraged by car dealers to buy BS III vehicles and register them out of the city, at Medchal (until 2010) and Sangareddy.

Following the report submitted by the vigilance department, RTA officials put 15,000 cabs on a blacklist for illegal practices during vehicle registrations and refused to allow them to renew fitness certificates and permits. But president of the Telangana State Cab and Bus Operators’ Associat-ion Syed Nizamuddin said most drivers did not know they were doing anything illegal. “Many had come from weak educational backgrounds and had purchased cabs on loans from dealers based on the directions given by cab service operators and had registered their vehicles at Sangareddy and other districts using false ID and address documents. Now, they are suffering as the transport department is not allowing them to renew their fitness certificates and permits.”

Joint Transport Commissioner T. Raghunath said the government has banned the renewal of fitness certificate and permits to cabs involved in the registration scam.

Taxi facts

1.25L: Taxis in Greater Hyderabad
80,000: Running under Ola and Uber
30,000: Cabs engaged by IT companies
15,000: Independent cabs or taxis being run by travel agencies like Meru
Greater Mumbai has only 58,000 cabs, Bengaluru stood second after Hyderabad with 1.05 cabs
15,000 cabs operate with fake registrations
Vigilance officials have verified at field level 7,500 drivers who registered cabs with fake addresses after 2014.
Vigilance dept. verified addresses

771: Sangareddy
1,355: Nalgonda
446: Nizamabad
2,200: Rangareddy
900: Warangal
500: Adilabad
572: Karimnagar
531: Khammam
25: Remaining on the outskirts to Hyderabad in Mahbubnagar.