The Commonwealth Games Organising Committee, chaired by Mr Suresh Kalmadi, will not be bothered by the recent hike in road tax and VAT for buying vehicles. The committee on Wednesday received official approval from the Delhi government to buy 2,000 Scorpio SUVs without paying the seven per cent road tax and 12.5 per cent VAT on every vehicle.
Commonwealth Games Organising Committee (CGOC) officials said these 2,000 cars will be used to transport guests during the Games, which begin on October 3 this year. Those critical of the move, however, sought to know whether it was an attempt to keep the Maharashtra automobile manufacturer happy. Mr Suresh Kalmadi’s brothers run dealerships for major car and two-wheeler manufacturers and service and spares facilities for the manufacturer of the Scorpio. It remains to be seen whether the Scorpios will be bought directly from the manufacturer, given the size of the order, or from dealerships run by his relatives, or whether it will involve an overriding commission.
Getting approval to purchase the vehicles was not easy for the CGOC, said an official. “We were asked to explain the use of these vehicles after the Games gave over,” said a senior official. Officials confirmed that these 2,000 Scorpio cars will be sold after the Games conclude. “However, when these vehicles are sold, the buyers will have to pay the road tax and VAT,” said Mr Satpal, the information officer to the Delhi chief minister.
Delhi government sources also confirmed that the plan to purchase these Scorpio cars was raised in a meeting on Wednesday between CGOC officials and Delhi CM Sheila Dikshit. They added the decision was taken after “last-minute research” by the CGOC showed that they might fall terribly short of vehicles to transport guests. The decision comes two days after the announcement of a hike in road tax.