AITWA delegation urge RBI Governor Sanjay Malhotra to intervene in Vehicle Seizure Crisis by Financers

MUMBAI : A delegation of the All India Transporters Welfare Association (AITWA) led by Shri Ramesh Agarwal, Patron, Shri Ashok Goyal, National President, Shri Abhishek Gupta, General Secretary, Mrs. Reema Kothari, Chairperson – Women Wing and Shri Rajendra Agarwal, Senior VP West Zone recently called on Shri Sanjay Malhotra Ji, Honble Governor of the Reserve Bank of India (RBI) at the central Bank’s Mumbai headquarters.

The AITWA delegation complimented the Governor on the very forward-looking step to reduce the interest rates beyond all estimates, recognising it as a bold and timely decision that will ease financial pressure across the transport and logistics sector.

During the long meeting, AITWA presented a detailed memorandum documenting the escalating harassment faced by transporters when Banks & Non-Banking Financial Companies (NBFCs) detain goods vehicles simply because the registered vehicle owner has defaulted on Equated Monthly Instalments (EMIs)-even though the transporter is only a hirer and has no ownership stake in the vehicle.

“Stopping a loaded truck midway on a national highway—especially without notice to the transporter or cargo owner—causes severe supply-chain disruption, expiry of eway bills, heavy financial penalties under GST, and untold reputational damage,” Shri Ramesh Agarwal told the Governor.

AITWA highlighted the following issues:

• Field agents appointed by financers routinely intercept goods-laden vehicles in remote locations, citing hypothecation default.
• Banks or NBFCs have no legal lien on such cargo which is held hostage as a pressure tactic to recover dues.
• Consignors, consignees, and transporters lose millions due to delays, forced trans-shipment, line stoppage and damaged goods.
• Lapsed e-way bills expose transporters to penalties in lacs under Section 129 of the CGST Act.

• No transparent grievance-redress mechanism exists for aggrieved transporters

“Transporters become collateral damage in a dispute they did not create,” added Shri Ashok Goyal, underscoring the mental stress and safety risks faced by transporters/cargo owners.

Shri Sanjay Malhotra gave a patient hearing and acknowledged that banks and NBFCs should not seize cargo as it has multiple other repercussions. He assured the delegation that clear, time-bound guidelines will be framed to prevent unlawful detentions and to create a swift grievance-redress channel for transporters.

“The RBI Governor was very positive and committed to reducing unnecessary stoppages to India’s economy cause by such disruptions in transport sector,” Mrs. Reema Jogani shared.

Shri Abhishek Gupta expressed confidence that the forthcoming guidelines will “restore transparency, safeguard supply chains, and uphold the economic vitality of the nation’s logistics sector.”

About AITWA

All India Transporters Welfare Association (AITWA) is the apex body representing India’s road transporters, working to streamline policy, enhance driver welfare, and champion sustainable, tech-enabled logistics with a Nation first approach.