Ernakulam: The All Kerala Rent-a-Cab Association (RCA) highlighted the widespread presence of illegal operators running rent-a-car services without proper permits and licenses during a press conference held at the Ernakulam Press Club on Monday.

They demanded prompt action against such operators for flouting violations and called for invoking cybercrime provisions against those posting and sharing misleading advertisements on social media.

Sanu, the association's secretary, told Onmanorama that such illegal businesses are rampant in the state and thrive on the demand generated by tourism. "Most of these companies operate through social media with attractive posters and advertisements, which are done professionally, but they lack the proper permits to run such businesses."

Sanu highlighted that those with multiple vehicles registered for private use are renting them out without proper licenses to evade taxes and operate at a low cost.

He added that these businesses, which operate under the radar, do not pay the 18 per cent GST, which such businesses are typically subjected to, and also evade the All India Permit that costs between ₹24,000 and ₹36,000 annually. These expenses raise the operating costs of authentic businesses, leading to higher prices. Meanwhile, those who avoid them are allowed to charge much lower rates, which gives them an unfair advantage in the market.

"Sometimes people pledge their cars for loans for short periods. We have found that these cars are rented out during these periods by rent-a-car businesses without the knowledge of their owners, sometimes even for illegal purposes," Sanu says. 

Several social media pages of such businesses use tags and titles such as "government-approved," which give users the impression that they are official pages or legal entities, but in reality, they lack the necessary documentation and permits. 

Additionally, such fake businesses claim that they are a part of the All Kerala Rent-a-Cab Association (RCA) through their advertisements and social media, in a bid to gain public trust. But they could not verify it when questioned further, says Sanu. They also take on names that resemble registered companies to exploit those who mistake them for the actual company.

Sanu says several customers have reported being scammed by such individuals. "They take money from tourists in the name of a security deposit, which would be returned 2-3 days after they return the vehicle, but refuse to refund the amount at the last minute," he says, pointing out how, despite attractive prices, their dealings remain unprofessional.