Rental operators without valid permits to face legal action in Goa

The Goa government has decided to issue an ordinance to cancel the licenses of rental car and bike operators who use private vehicles for commercial purposes. This decision comes after the transport department highlighted the loss to the state exchequer due to the non-payment of GST and the use of private vehicles for commercial activities.
Murari Shetye
  • Updated On Jun 7, 2025 at 06:00 PM IST
<p>Image credit - iStock-1511701700</p>
Image credit - iStock-1511701700
State govt on Friday decided to issue an ordinance for the licence cancellation of rental car and bike operators who deploy private vehicles for commercial use. Action would be taken against such operators as well as individuals who do not have a licence to run a rental vehicle business but give private vehicles for hire to tourists.
“The transport department will initiate an ordinance for licence cancellation of rent-a-car/bike operators using private vehicles for commercial use,” Sawant said.

Last year, the traffic cell of Goa police issued more than 600 challans for using private vehicles for commercial purposes. Once the challan is issued, vehicle owners must appear before court to pay the challan.
Sawant chaired a meeting at Police HQ, Panaji, to review these matters and the progress of the border checkpost infrastructure and enforcement readiness. The meeting was attended by the IGP, DIG, transport director, North Goa SP, transport SP, and PWD principal chief engineer.

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During the meeting, the transport department pointed to the loss to the exchequer due to the use of private vehicles for commercial purposes and the nonpayment of GST.

Sawant said that only 10% of private vehicles were identified and challaned for being used for commercial purposes.
The transport department noted that the Transport Act was amended in 2018, allowing the main rental car/bike operators to have agreements with their close aides and start the business, but those individuals were exempted from paying GST.

Sawant directed the transport department to make necessary changes to address the revenue leakage.
On another front, the green initiative “Ek Ped Maa Ke Naam” is to be implemented at all police stations, Sawant said. Moreover, he said govt is working to build a seamless, transparent, and citizen-friendly mobility and enforcement ecosystem on Goa’s borders.
Sawant reviewed infrastructure readiness at Patradevi and Keri (North Goa) and Mollem and Polem (South Goa). He discussed land availability for developing way-side public amenities and IOCL petrol pumps, reviewed application development progress by ITG, and rollout plans of the traffic SP.

He also deliberated on the public notification strategy, automated border monitoring, and integration with VAHAN.
As for rental car and bike operators, revenue minister Atanasio ‘Babush’ Monserrate blamed them for causing accidents and harming the taxi business in the state.



  • Published On Jun 7, 2025 at 06:00 PM IST
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