Autowallah goes to court so that you pay less

Auto driver moves court against a middleman who is reportedly charging him Rs 3 lakh extra for an auto. Driver says commuters are overcharged by his clan to meet demands of corrupt middlemen

Auto driver moves court against a middleman who is reportedly charging him Rs 3 lakh extra for an auto. Driver says commuters are overcharged by his clan to meet demands of corrupt middlemen

Delhi's favourite whipping boy seems to have turned an honourable leaf. The autocratic autowallah is taking steps so that you pay less while traveling.
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In a case that could set an example for thousands of autowallahs in the city, an autorickshaw driver has approached the Karkardooma Court to highlight an issue that could be the root of why commuters are 'fleeced' by his clan. The driver has complained he is being forced to surrender the autorickshaw for which he has reportedly paid Rs 3.7 lakh. The actual cost of an autorickshaw does not go beyond Rs 1.5 lakh. The middleman, from whom the vehicle was procured, allegedly wants him to pay Rs 3 lakh more.u00a0

Braveheart: Vipin Kumar Sharma is waging a legal battle against corrupt auto financiers pics/Imtiyaz Khan

The case

The driver, Vipin Kumar Sharma from Bihar, had bought an autorickshaw from a middleman, Suraj Gupta in Delhi for Rs 3.9 lakh in 2007. Sharma said he was already driving an old rickshaw belonging to the middleman, for which Gupta had to pay him Rs 1,53,000 as dues. But Gupta reportedly struck a deal with Sharma according to which, he adjusted the dues against the new auto. About Rs 1 lakh was kept as security deposit for the new vehicle and Rs 53,000 was to makeup for few of Sharma's monthly installments. "The remaining sum was to be paid by me within 36 months," said Sharma.

Meanwhile, Gupta died and another middleman, Pankaj, took charge. In April this year, Pankaj reportedly told Sharma to pay Rs 3 lakh more for the new vehicle. "In April Pankaj asked me to pay Rs 3 lakh more or surrender the auto. He refused to acknowledge the payment receipts given to me by Gupta. Pankaj also threatened me.

But I have invested all my earnings into this auto. How can they snatch it from me?" said Sharma. MiD DAY has the payment receipts given to Sharma by Gupta.

The black hole

Interestingly, while on surface, the case seems to be one of exploitation of a poor migrant worker by a rich middleman, it points to a deeper and darker nexus involving autorickshaw owners, netas and government officials. It also highlights a cap the Supreme Court had put on the number of autorickshaws that can ply in Delhi and which indirectly forces the auto drivers to overcharge commuters. (See box on Auto mess).

Sharma's auto (DLIR-K-2843) was first bought by one Harvir, a resident of Sunder Nagari in East Delhi whose address is now untraceable. (The court has issued a public notice saying it will take an ex-party decision if Harvir does not appear in the court.) The auto was financed by Mitushi Credits and Holdings Pvt Ltd from Paharganj. Reportedly, Pankaj worked with another financing company, Janani Auto Deal. Pankaj gave the auto to Suraj Gupta, who sold it to Sharma.

However, after Gupta died, Pankaj wanted to repossess the auto and even tried to forcibly take it from Sharma.u00a0u00a0

u00a0"I keep a bottle of petrol in my autorickshaw. If they try to either snatch it from me or assault me, I will set the vehicle on fire. I can't hand over my life's savings for free," said Sharma, who is living in fear of being attacked by the middleman's goons.

"They can attack me anywhere. I keep the ownership documents of the vehicle tied to my leg so that they can't take it from me. I also avoid driving all over the city. I only ferry passengers from one pre-paid taxi booth to another and ensure it's a family. The goons can kill me easily," he said, adding, "The middlemen charge us so much that we are forced to overcharge commuters."u00a0 Meanwhile, Pankaj refutes Sharma's allegations. "He is lying. The case is now in the court and we will abide by its decision," said Pankaj.

Rs 3.5 lakh was the black-market rate of an autorickshaw in Delhi two years ago

Rs 1.5 lakh is the actual cost of an auto. But a driver is forced to pay middlemen about Rs 4.8 lakh for a new vehicle and an accompanying permit

Auto mess
As per a Supreme Court order given in 90s, the number of autorickshaws that can be registered in the city cannot exceed 55,000. Middlemen and financiers have taken advantage of this ruling to create a black market.

They force autorickshaw drivers, who mostly ply the vehicles on rent, to pay huge amounts throughout their lives.

Over 90 per cent of the autos plying on Delhi's roads are owned by cartels of middlemen and autorickshaw financiers. The cost of an auto is around Rs 1.5 lakh. But because of this ban on fresh registration and an inefficient public transport system, a driver has to pay about Rs 4.8 lakh for a new vehicle and an accompanying permit.u00a0

Auto drivers who buy vehicles from middlemen generally get a loan of Rs 4.8 lakh from a financier at the rate of 18 per cent. The financier and the cartel people work in tandem.u00a0 Every month the driver has to pay back around Rs 16,000 as installment. Besides, the autowallah has to pay for CNG and has to also grease the palms of traffic police to ply without problems.

The auto drivers say in most cases they fail to pay the installments on time and their autos are taken away by the cartels.u00a0 Sometimes, autowallahs ply the vehicles on a daily rent of Rs 260 (for 12 hours).u00a0 The cartel can increase the rent depending upon the route the vehicle is catering to.