Lko RTO blocks vehicle registrations over loans from unauthorized firms

Around 20 vehicle owners in the state capital are caught in a registration logjam at the regional transport office (RTO), following a recent directive from the transport department. The guideline prohibits vehicle registration if the loans are sourced from financial firms not authorized by the Reserve Bank of India (RBI).

Additional regional transport officer (ARTO) Pradeep Singh on Tuesday informed that the Lucknow RTO is reviewing last year’s data to verify that all lending institutions comply with RBI authorizations. “The RBI has provided a list of over 9,500 authorized financial firms and a separate list of unauthorized ones. Registrations linked to non-compliant firms will be rejected,” Singh said. He added that the RTO’s legal department is managing these cases, and 19 to 20 vehicles have already been flagged, though the final tally is still under review.

The situation has prompted several affected vehicle owners to approach the RTO, some even threatening legal action. ARTO Singh responded firmly, saying, “Anyone is welcome to pursue legal action, but the RTO cannot register vehicles with incomplete or unauthorized documentation. The applicants in question have yet to produce the required paperwork.”

Regional Transport Officer Sandeep Tiwari assured that the department is conducting thorough checks on all flagged cases and warned that registrations linked to unauthorized financial firms would not proceed. “The RTO is committed to ensuring due diligence and cannot endorse registrations with illegitimate loan documentation,” he said.