State govt would first have to pay ₹504 crore as compensation to a private company before it shuts down 22 RTO border checkposts, an official release said on Sunday.

According to the statement, the company was contracted to implement an ‘Integrated Check Post' project for the state transport and customs departments and, according to the signed deal, was to operate and maintain facilities at the RTO points. But since a decision was made to shut the border posts, the company would have to be compensated for the investment it made, the release said, quoting Maharashtra transport minister, Pratap Sarnaik.

"However, after paying this amount, the related technology and immovable assets will become the property of the transport department," the statement added.

Sarnaik said a proposal to this effect has been sent by his department to the chief minister's office. All border checks will be closed as soon as the approval is received.

In September 2021, the Ministry of Road Transport and Highways wrote a letter to Maharashtra and other states, saying there was no need anymore for regular check posts at the state borders after introduction of GST in July 2017. The ministry sought status reports from 13 states, including Maharashtra, on closure of RTO check posts.

Sarnaik said the decision to close RTO check posts would bring Maharashtra on par with 18 other states in adopting a modern, paperless, and technology-based transport monitoring system. "This important decision is in line with the central govt's vision of Ease of Doing Business. It will benefit scores of transporters and will improve road safety as well," the minister said.

But the state Congress unit has objected to the proposed release of ₹504 crore to the private firm. "State govt must put before the public the agreement documents and its terms and conditions. Taxpayers must know how the amount of ₹504 crore was arrived at and whether the govt was actually legally bound to pay such a huge amount of money," state general secretary of the party, Jitendra Dehade, said.