Karnataka: High security number plates mandatory from November 17; local dealers allege 'cartel' conspiracy

In an official notification dated August 17, the transport department stated that HSRP will be mandatory for all vehicles from November 17,2023.

With the Karnataka transport department making high-security registration plates (HSRP) mandatory for all vehicles registered prior to April 1, 2019, local dealers allege that it will only benefit a small cartel of manufacturers of such plates.

In an official notification dated August 17, the transport department stated that HSRP will be mandatory for all vehicles from November 17, 2023.

While the transport department stated that the cost of HSRP for four-wheelers is nearly Rs 500 and for two-wheelers is around Rs 300, many motorists claim that vendors are charging Rs 1,000 to Rs 1,500 for four-wheelers and Rs 400 to Rs 500 for two-wheelers. They said fixing HSRP to nearly 2 crore vehicles registered before April 1, 2019 will be a difficult task.

'Cartel' influence

However, C Mallikarjuna, Additional Commissioner for Transport, Karnataka, said: "Motorists can apply for HSRP through Society of Indian Automobile Manufacturers (SIAM)'s portal (siam.in) and make payment." He said he will look into the complaints from vehicle owners.

In a statement, Akila Karnataka Vehicle Number Plates Manufacturers’ and Sellers Association said, "Karnataka government's order, which makes it mandatory to install HSRP on 2 crore old vehicles registered prior to April 1, 2019, is not only a blatant violation of existing rules but is also designed to benefit a small cartel of manufacturers of such plates."

"It has thrown around 25,000 people and their families engaged in manufacturing these plates out of business. The circular has several flaws as it permits only vehicle manufacturers (OEMs) and their dealers to supply HSRP for old and new vehicles," it said.

"As per the existing provisions, HSRPs for old vehicles can also be supplied through the registering authority, OEMs, and original HSRP manufacturers through their dealers," it said.

"However, the Karnataka government through the circular mandated the supply of HSRPs for old vehicles only through OEMs and their dealers. It has resulted in the exclusion of the majority of eligible manufacturers from supplying HSRP for old vehicles and facilitated the backdoor entry of four influential HSRP manufacturers," it said.

“Even though there are 23 HSRP manufacturers who have approval from the Central Government, the Karnataka government’s circular has favored only four HSRP manufacturers who tied up with OEMs. The booking, payment collection, billing, and supplying are being done only by them through their private portals,” says Akila Karnataka Vehicle Number Plates Manufacturers’ and Sellers Association president S Satish.

"Since the majority of original HSRP manufacturers and their dealers who are eligible as per the rule have been eliminated from the market, these four manufacturers are selling HSRPs at an exorbitant price," said Satish.

Meanwhile, Kamaljeet Soi, a member of the National Road Safety Council (NRSC), welcomed the move stating that HSRP will reduce crime rates.