Transport dept cannot reject vehicle conversion on arbitrary grounds: Telangana HC

Hyderabad: The Telangana High Court recently ruled that the Transport Department cannot reject vehicle conversion requests on speculative or arbitrary grounds.

This decision arose from a petition filed by C Ratnajee Rao of Hyderabad, who sought to convert his Innova vehicle from a Maxi Cab (a transport vehicle) to an Omni Bus categorised for non-transport use.

Though he completed all procedural requirements, including booking a slot and paying Rs 2 lakh for taxes and charges, his application was rejected by the Transport Department twice in 2022 and again in 2025 without adequate legal reasons.

Rao approached the High Court, which had earlier directed the department to decide the matter according to law. Despite this, the department rejected the conversion application in March 2025, citing concerns such as revenue loss to the government due to different tax rates for Maxi Cabs and Omni Buses and potential misuse of the vehicle post-conversion.

The government’s contention was that permitting such conversions could harm state revenue and possibly lead to illegal use.

After considering both sides, Justice K Sharath emphasised that denying vehicle conversion on presumption or vague fears is not legally justified.

Consequently, the court directed the Transport Department to grant permission for the vehicle conversion within six weeks, following the law, and disposed of the petition.