CAG Report Highlights Major Lapses in Transport Department Operations

Shillong, India Aug 30, 2026 ALN: The Comptroller and Auditor General of India (CAG) has flagged major lapses in the Transport Department, highlighting issues such as licenses issued without tests, government vehicles operating with registration certificates expired for 15 years, and stolen vehicles still marked as ‘active’ on the VAHAN portal.

The findings come from the Performance Audit 2019-24, a comprehensive examination of the operations within the Transport Department. The audit revealed that District Transport Offices (DTOs) issued driving licenses before the mandatory 30-day gap between learner and permanent licenses, and without tests, allowing unskilled drivers to obtain licenses. This raises significant concerns regarding road safety, as untrained individuals may be ill-equipped to handle vehicles, leading to potential accidents and fatalities.

The report pointed out operational inefficiencies, lack of infrastructure, and weak enforcement, noting that driving schools were not monitored, which violates Rule 27 of the Central Motor Vehicle Rules, 1989. The absence of oversight on driving schools undermines the quality of driver education and training, which is crucial in ensuring that new drivers are adequately prepared for the responsibilities of operating a vehicle.

In addition to the lack of monitoring, there is a notable absence of designated testing grounds and Automated Testing Stations (ATS). The delays in establishing the Automated Inspection and Certification (AIC) center pose significant challenges in conducting practical driving tests, vehicle fitness inspections, and automated vehicle inspections for environmental compliance. These elements are essential for ensuring not only the safety of drivers and passengers but also for adhering to environmental standards aimed at reducing vehicular pollution.

The CAG also found that DTOs in Khliehriat, Mawkyrwat, and Tura delayed processing 12,120 learner licenses (24%), 5,655 driving licenses (23%), and 1,655 renewals (40%). Such delays can hinder individuals from legally obtaining the right to drive, which can impact their employment opportunities and mobility. The inefficiencies in processing licenses also reflect poorly on the administrative capabilities of the Transport Department.

Moreover, the audit report indicated that the VAHAN database contains significant gaps, such as missing vehicle details. Alarmingly, 116 government vehicles were found to have registration certificates older than 15 years still marked ‘active’ without fitness or tax, violating Rule 52A (2). This raises questions about the regulatory framework and its enforcement, as it allows vehicles that may not be roadworthy to remain in circulation.

Additionally, it was reported that 854 vehicles were registered with out-of-jurisdiction addresses and 522 without permanent registration. This raises concerns about the integrity of the vehicle registration process and the potential for misuse, as vehicles registered outside their jurisdiction might evade local regulations and taxes. Furthermore, the report highlighted that 201 vehicles were brought from neighboring states without the mandatory No Objection Certificates (NOCs), which are crucial for preventing the entry of stolen or unauthorized vehicles into the state. The presence of such vehicles can have serious implications for law enforcement and public safety.

The CAG findings also revealed a concerning statistic: 1,287 vehicle thefts were reported during 2019-24, yet the police did not share data with the transport department as required under Section 62 of the Motor Vehicle Act. This lack of communication left stolen registration certificates active and open to fraud, further complicating the efforts to track and recover stolen vehicles.

Financially, the audit findings revealed a significant revenue loss of Rs 166.15 crore from non/short levy of motor vehicle tax, registration fees, High Security Registration Plate (HSRP) fees, permit and fitness fees, and fines. Additionally, Rs 0.68 crore was lost from unreturned bank drafts sent to the State Transport Authority, Assam. This financial shortfall not only affects the state’s revenue but also hampers the Transport Department's ability to improve infrastructure and services.

Weak enforcement of regulations resulted in penalties totaling Rs 87.94 crore not being imposed and Rs 10.77 crore in weighment fees not collected. Such lapses in enforcement can undermine public trust in the Transport Department, as citizens may perceive a lack of accountability and oversight.

In light of these findings, the CAG has made several recommendations aimed at improving the operations of the Transport Department. These include the establishment of Standard Operating Procedures (SOPs) for service delivery, an address verification checklist under Section 40, and training on NOC under Section 48. Furthermore, awareness programs for operators are recommended to ensure compliance with regulations.

The report also emphasizes the need for the early operationalization of the AIC center to facilitate better vehicle inspections and compliance checks. Rectification of VAHAN records is crucial to ensure accurate data management, while automated fee calculation and SMS/WhatsApp alerts for renewals and demand notices could enhance efficiency and transparency. Finally, sharing defaulter lists with the police could improve enforcement and compliance with vehicle regulations.

The implications of the CAG report are significant, as they highlight systemic issues within the Transport Department that require urgent attention. Addressing these issues is vital for enhancing road safety, improving service delivery, and ensuring that the department operates with integrity and efficiency. The recommendations provided by the CAG, if implemented, could lead to substantial improvements in the functioning of the Transport Department, ultimately benefiting the citizens it serves.