Illegal HSRP Sales Causes Rs 200 Crore Loss to Kerala Govt., Alleges Leading Trade Body

THIRUVANANTHAPURAM:
Alleging large-scale violations in the supply of High Security Registration Plates for vehicles registered before April 1, 2019, a leading trade body has appealed to the Kerala Government to launch stringent legal action against licence plate manufacturers selling HSRPs without mandatory government approval, causing an estimated loss of nearly Rs 200 crore to the state exchequer.

The High Security Registration Plates Manufacturers Association (HSRPMAI) of India pointed out that the supply of HSRPs is governed by Rule 50 of the Central Motor Vehicles Rules (CMVR) and the High Security Registration Plates (HSRP) Order, 2018.

Under these provisions, HSRPs for new vehicles registered on or after April 1, 2019, can be supplied by the registering authority or vehicle manufacturers and their authorised dealers.

However, for vehicles registered before April 1, 2019, HSRPs can be supplied only by the registering authority, vehicle manufacturers and their dealers, or licence plate manufacturers and their dealers approved/authorised by the respective State Government.

The rules require vehicle manufacturers to supply only blank HSRP plates to their dealers, who must emboss the vehicle registration number, print the third registration mark using their own infrastructure, and affix the plates on the vehicle, said the Association.

“There is no provision in the rules permitting vehicle manufacturers or their dealers to authorise third-party licence plate manufacturers to directly sell HSRPs to owners of older vehicles,” said Kishor KK, Treasurer, HSRPMAI.

The Association also pointed out that the Ministry of Road Transport and Highways, through a communication dated June 16, 2026, had reiterated that licence plate manufacturers or their dealers require approval from the concerned State Government before supplying HSRPs for vehicles registered prior to April 1, 2019.

Still, several licence plate manufacturers are allegedly supplying HSRPs for older vehicles by claiming authorisation from vehicle manufacturers, even though they have not obtained approval from the state government.

Kishor said invoices issued by such entities indicate that these sales are continuing illegally the state. It observed that the Kerala Government has already floated a tender to appoint authorised licence plate manufacturers for supplying HSRPs to pre-2019 vehicles and also prescribed a government royalty to be paid on every plate supplied. By operating outside this framework, unauthorised suppliers are allegedly evading payment of government royalty while continuing to sell HSRPs, resulting in substantial financial loss to the state.

Kerala has around 1.3 crore vehicles registered before April 1, 2019. Based on the number of such vehicles and the royalty specified in the tender, the Association estimated that the potential loss to the Kerala Government could be around Rs 200 crore if the alleged unauthorised sales continue.

“The Government has already established a transparent mechanism for approving licence plate manufacturers through a tender process. Allowing unauthorised entities to operate not only violates statutory provisions but also deprives the state of significant revenue and undermines the integrity of the HSRP system,” Kishor pointed out.

In an advisory, the Central Government has stated that the vehicles registered prior to April 01, 2019, but without HSRP, shall not be penalized until a particular state issues notification authorizing HSRP vendors.

In 2024, the Kerala government also issued an advisory stating that it had not yet made HSRP mandatory on vehicles registered prior to April 01, 2019, and if such Kerala-registered vehicles are plying in any other state, these should not be penalized for non-fitment of HSRPs.

The Association urged the Kerala Government to immediately issue directions to all vehicle manufacturers (OEMs) and their authorised dealers to strictly adhere to the procedures laid down under Rule 50 of the Central Motor Vehicles Rules and the HSRP Order, 2018.

It also demanded that vehicle manufacturers and their dealers be directed to prevent vendors from supplying HSRPs for pre-2019 vehicles on the strength of OEM authorisation alone, unless they have obtained approval from the state government. The trade body further called for stringent legal action against licence plate manufacturers allegedly supplying HSRPs without the mandatory approval or authorisation from the state government.