Hyderabad: Recently, the state government approved new auto rickshaws for the city. However, local drivers have accused auto dealers of a major scam.
Drivers claim that showrooms, working with financiers and brokers, sell autos at high prices. They say those applying directly are denied vehicles, while dealer applicants receive them.
Hundreds of city drivers are upset, alleging corruption in Telangana’s auto-rickshaw scheme. They accuse dealers of charging too much.
The Telangana government approved 65,000 new autos, including 20,000 electric, 10,000 CNG, 10,000 LPG, and 25,000 retrofitted vehicles within the ORR limit. Applicants were to buy from authorized dealers at set prices.
Mahmood Hussain Makke, President of the City Auto & Motor Cab Drivers Welfare Society, described a Rs 10 crore scam. He said financiers, dealers, and brokers exploited the scheme, denying vehicles to individual applicants while benefiting dealer applicants.
Makke claims about 4,000 autos were sold illegally at high prices. People from outside ORR limits, including Nalgonda, Bhongir, Mahbubnagar, and Vikarabad, applied through brokers and received vehicles, while ORR drivers didn’t.
Mohammed Gaus, a victim, bought a CNG auto for Rs 2,82,000. His invoice was Rs 2,47,546, with Rs 8,200 for insurance and Rs 3,800 for TR fees, totaling Rs 2,59,546. He was overcharged by Rs 22,000.
There are many complaints of dealers charging Rs 22,000 to 50,000 more than fixed rates of Rs 2,59,000 for CNG and Rs 2,47,000 for LPG autos. LPG autos, priced at Rs 2,47,000, are sold between Rs 2.70 lakh and Rs 3.20 lakh. CNG autos, priced at Rs 2.59 lakh, are sold for Rs 2.86 lakh to Rs 3 lakh. Dealers often reject applications without explanation.
Agents also charge Rs 2,000 to Rs 10,000 for booking slots, further scamming drivers.
Makke noted that the union has contacted the Chief Minister, transport minister, and transport commissioner, urging action against the showrooms.
