Reliance Communications Limited

Car Lease Policy: To Hire/Own

Car Hire & Lease Policy

Doc No: RCOM-CHR-CAR-HIRE

Version 1.0

Contents
...............................................................................................................................................................................................1
OBJECTIVE......................................................................................................................................................................3
SCOPE...............................................................................................................................................................................3
SALIENT FEATURES.....................................................................................................................................................3
Scheme 1: CAR HIRE......................................................................................................................................................3
TERMS & CONDITIONS............................................................................................................................................4
Scheme 2: OWING A CAR..............................................................................................................................................4
PROCEDURE...............................................................................................................................................................7
TERMS & CONDITIONS............................................................................................................................................8
FORECLOSURE OF LEASE.......................................................................................................................................9
MAINTAINANCE..........................................................................................................................................................10
GENERAL......................................................................................................................................................................10
DOCUMENTS................................................................................................................................................................11
Amendments / Exception / Interpretation.......................................................................................................................11
Abbreviations ...............................................................................................................................................................12
ANNEXURE 1....................................................................................................................................................................22

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OBJECTIVE
The objective of this policy is to provide employees with the option to either procure a
car for official and personal use OR avail it on hire for sole purpose of official duties.

SCOPE
The policy is applicable to all Band 1 and above level employees.

SALIENT FEATURES
1.1.

Reliance Communications has at present tied up with M/s. xxxx xxx as our Car Lease
Partner.

1.2.

Car Value (CV) = Ex-Showroom Price + Registration + Stamp duty + Taxes (if any).
Cost towards accessories and insurance doesnt form part of the cost.

1.3.

The lease plan covers only passenger cars and excludes commercial vehicle & two
wheelers.

1.4. An employee can only opt for one car under the car lease policy. Leasing arrangement
will be available for the eligible employees for procuring a new /old car.
1.5. An Employee can opt for a car valued maximum up to annual CTC subject to the terms
and conditions as applicable.
1.6. The above limit refers to the on road cost of the vehicle including the following.

Ex Showroom price Net of Discounts if any offered

Registration (Corporate), Octroi if any, Road Tax & Stamp Duty

VAT (States Specific) Already included in Ex-Showroom price

1.7. Any additional cost towards accessories and insurance (if applicable) shall be paid by
the employee.

Scheme 1: CAR HIRE

1.8. The employee should not have opted for conveyance allowance.
1.9. The vehicle should not be registered in the name of employee, as self-hire / selflease of car wont be allowed under the policy. The vehicle should be registered
in the name of any third person/family members name. Car Hire charges will be
paid monthly to the third party. The payment will be made through electronic
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transfer in the third partys bank account and any applicable taxes will be
deducted as per Income Tax Act 1961 read with Income Tax rules 1962.
1.10.
The car will be hired by The Company for exclusive use of the employee
concerned and a third party Car Hire Agreement will be executed to this effect.
TERMS & CONDITIONS
1.11.
The owner will be paid the Car Hire Charges, included in CTC as subject
to the maximum limits as prescribed below: A minimum of Rs.3000 per month per
lakh value* of the car.(Value would be rounded off to the nearest
RS.50,000(*Latest Insured Depreciated value (IDV) of the car will be considered
for the purpose & every year new insurance certificate needs to be submitted for
the purpose of ascertaining IDV
1.12.
Lease validity is for 12 months from the date of car hire, unless renewed,
in which case, old agreement is terminated for new one.
1.13.
The latest insured depreciated value will be considered for the purpose of
determining the car hire amount on expiry of the term of the agreement.
1.14.
Employees who move to other countries for a period exceeding 90 days
(at a stretch), will have to necessarily close the car hire agreement.
1.15.
Car Hire charges, can only be changed once in a given financial year for
his / her existing car, and twice in case of upgradation of a new car.
1.16.
It is the responsibility of the employee to submit the duly signed car hire
agreement to the payroll and HR teams. Only on submission of signed
agreement along with required necessary documents, the payout under car hire
agreement and related components will be made
1.17.
Every month reimbursement can be claimed as follows, by furnishing
required proofs in original.
1.17.1.
Fuel & Maintenance addition limited to as follows*.
If Cubic Capacity <1,600 Rs.1800
If Cubic Capacity >1,600 Rs.2400
1.17.2.
Drivers Salary of Rs.900, will be added*.
*Above two heads will form part of CTC (Tax Impacted)

Scheme 2: OWING A CAR

2.1 Employee has an option to take any one of the schemes offered by the leasing
company. In all there are four options. As per the scheme, it is mandatory for an
employee to pay 20% of the Car Value as upfront payment to the leasing company.
The upfront payment made doesnt include any taxes. At the end of the tenure of the
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lease the employee need to pay taxes as applicable on the upfront payment done at
the beginning (Currently VAT).
Lease Tenure in Months
Down payment - upfront
Car Value Payable End of the Tenure
Insurance (payable by employee)
Rental per lac (incl. VAT), applied on 80% of
the 'on-road' price)
Foreclosure (Subject to surrender of car)
2.2 The car shall get registered on the name

Option 1
48
20%
0%
Actual

Option 2
48
20%
20%
Actual

Option 3
48
20%
25%
Actual

Option 4
36
20%
35%
Actual

2,946

2,494

2,381

2,585

0%
0%
0%
0%
of the leasing company in a State where the

employee is posted. In case the value of the car is higher than the upper limit as
referred in clause 3.2 the employee will have to make upfront payment for the
differential amount to the leasing company.
2.3 Once an employee opts for Car Lease Scheme, the amount payable by EMI is kept
debited to CTC. Perquisite tax will be applicable as per provisions of the Income Tax Act
2.4 Employees can opt for reimbursement of vehicle running and maintenance charges up
to limits indicated in the compensation structure. This reimbursement shall be made
against production of bills/receipts
2.5 Illustration given below is for a car which is being registered in the State of Maharashtra.
The EMI amount may differ States-wise due to change in VAT and Taxes.

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2.6 The calculation is on 80% of the car value payable in 36 EMI of Rs. 2,585 per lac. At the
end of the tenure, the car ownership gets transferred to the employees name by paying
35% of the car value.
2.7 Any expenses incurred towards running and maintenance of the car and such other
expenses as may be attributed to the employee by way of ownership/usage of the
vehicle shall be borne by the employee and will include cost of transferring the
ownership of the car at the end of the leasing period.
2.8 The scheme allows an employee to surrender the car to the leasing company and exit
the scheme without paying any penalty or foreclosure charges.
2.9 In case an employee resigns, he/she may either surrender the car to the leasing
company or continue with the leasing company by converting the car lease into an
Individual Lease Plan on terms and condition as applicable.
2.10

On surrender, if the Market Value (MV) of the car is higher than Outstanding

Book Value (OBV), then in such case the leasing company shall pass back such gain to
the employee and if there is a loss incurred, it shall be borne by the leasing company
Employee will be responsible to account such gains in his tax returns.
2.11

M/S xxxx our leasing partner is also offering a Deferred Purchase Plan (50:50

Scheme) - At any time during the lease period, the balance residual value can be further
converted into a deferred purchase plan. Employees have a choice to pay 50% of the
OBV and the balance 50% with accrued interest payable for the balance tenure of
lease.
2.12

Secondary Lease Scheme details - At the end of the lease period, the balance

residual value of the car can be further converted into a secondary lease on mutually
agreed tenure through the leasing company by signing a new Vehicle Lease Contract
Form (VLCF).
2.13

The options under para 11 and 12 shall be exercised by the employee in his

personal capacity and are outside the scope of this policy.

2.14

The company would recover from the Employees salary any charges / levies

arising from the possession or use of the leased car by an employee.

2.15

In case of intercompany transfer with in Reliance Communication group; on

informing the leasing company the car lease rental payable shall get billed to the
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transferred company. The relieving companys administration department needs to

inform the leasing company about change in invoice and inform the administration
department where the employee got transferred to.
2.16

In certain exceptional circumstances (theft/substantial damage/total loss etc.) a

leased car may be temporarily unavailable for the use of the employee. It is however,
expressly understood and agreed that this will not absolve the employee of his
responsibility towards payment of lease rentals till such time the vehicle is either
surrendered back to the lessor or foreclosure happens through insurance claim
settlement.
2.17

Incase if a (theft/substantial damages/total loss etc) has happened during the exit

period of a resigned employee, in such case the employee is required to fulfill the
monthly car lease rental till the insurance settlement has happened. Before exit the
employee is required to give such postdated cheque towards the monthly car lease
rental or the employer may choose to recover it from the settlement dues if any.
2.18

In case an employee absconds with the leased car, in such an event the

company may proceed against such employee on criminal ground and file a case of
theft or such similar measures to protect its best interest, at the cost and consequences
of.
PROCEDURE
a. Employee need to fill Quote Request Form (QRF) for a car which the employee wants to
procure and attach a Performa invoice from a dealer of his/her choice or may request
leasing company to give a quotation to the Administration Department.
b. Once the QRF is handed over to the leasing company, the leasing company will generate
the VLCF form and submit it to the respective administration department who shall forward
the same to the employee for his/her signatures.
c. Employee need to submit the following documents to the administration department for
authorizing the leasing company for procurement of the car.
i.

Duly Signed Vehicle Requisition form Annexure 1

ii.

Duly filled Authorization Form for Company Car Lease Annexure 2

iii.

Employer Employee Agreement on a Stamp Paper Annexure 3

iv.

Duly signed Vehicle Leasing Contract Form (VLCF) - Annexure 4

v.

Cheque for paying 20% of the Car Value in favor of leasing company

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Cheque towards first year insurance premium payable in favor of leasing company

d. On receipt of the above documents, the Administration department shall take necessary
approval from the HR Head and shall authorize the VLCF form by signing it and putting
companys stamp and forward the same along with the cheques to the leasing company.
e. On realizing of these cheques, the leasing company shall release the purchase order to
the concerned dealership from where the vehicle is being procured.
f. Depending on the availability of the vehicle a tentative expected delivery date shall be
intimated to the employee and to the respective administration department.
g. On delivery of the car, the employee shall be given Delivery Acknowledgement form
confirming delivery.
h. Post-delivery documents such as Lease Letter, Insurance Cover Note/Policy, and RC
Book shall be handed over to the administration department who shall further hand it
over to the respective employee. If any forward sale contract signed by the employee
with the leasing company, then the same shall be handed over to the employee by the
leasing company
TERMS & CONDITIONS
a. Under the Lease Agreement, the employee is required to commit to a minimum lease
period (36/48 months) upfront.
b. The lease car shall be registered in the name of the lessor.
c. Employee will have to sign two documents to procure the car under the lease agreement
i.e.

Employer Employee agreement (Stamp Paper)

Self-attested VLCF. Both duly filled forms need to be signed and submitted
to the respective administration department for further processing.

d. The employee by virtue of possession, accepts the risks for the vehicle of he/she has
custody and is liable in accordance with the provisions under the Motor Vehicles, Act 1988
(the Act)
e. In case the employee fails to fulfill any of his/her obligations as mentioned above or as per
the Master Lease Agreement (MLA) signed between the Company and Lessor or the
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Vehicle Lease Contract Form (VLCF) and as a result of which the Company suffers any
loss or damage, the employee shall in such event be liable to compensate the Company for
all such loss / damages, including legal costs and expenses caused by employees
default(s). The Company shall have right to adjust all such amounts from the employees
salary or against the settlement of dues
f. Administration Department forwards the EMI data to the payroll team and files the
documents in the personal file of an employee and shall manage the monthly advance
lease EMI payout to the leasing company
g. HR has the right to reject a request without stating any reason. Employees net salary and
CIBIL report shall be checked by the leasing company before authorizing the procurement
of the car.
h. The commencement of the EMI shall start as follows:Delivery of the Vehicle
Calendar Month Date
1st-15st
16th-31st

Commencement of Tenure
Same Month
Subsequent Month

.
FORECLOSURE OF LEASE
a. Once the employee has confirmed his/her resignation and exits the company or wishes to
exit the leasing arrangement, in such case the employee needs to give a notice of 30 days
to the administration department to inform the leasing company for taking necessary action
on the following.
i.

If the employee wishes to retain the car, then he/she need to complete the
formalities of converting the company lease into individual lease / deferred
purchase / buy back with the leasing company.

ii.

If the employee wishes to surrender the car and foreclose the lease then the
leasing company shall complete the process of deriving Market Value through an
independent valuer and inform the admin department on the difference of Market
Value and Outstanding Book Value, difference if any gain or loss shall be
communicated to the employee. However it is expressly clarified that any gain shall

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be passed back to the employee whereas any loss shall be borne by the leasing
company.
iii.

Leasing company shall share the final dues on the car, if any, which the
employee pays and sent a No Dues Certificate to the company on the closure.
Under no circumstances such recovery shall be kept pending to be recovered from
full and final settlement of an employee.

iv.

Once admin department receives no dues certificate from the leasing company,
they shall inform the payroll department on foreclosure of such car lease and advise
the leasing company to complete all the transfer formalities in the name of the
employee.

b. Incase if the advance notice is not served by the employee, in such scenario the employee
is liable to pay the lease rental as may be applicable on case to case basis.

MAINTAINANCE
a. It shall be the responsibility of the employee to maintain the vehicle in good working order
and its operating condition and the company shall not be responsible for the same.
b. The employee shall be responsible for the maintenance of all documents relating to the
vehicle as are in his/her possession and any liability, monetary or otherwise, arising out of
unavailability of valid documents shall be to the account of the employee.
c. The user of the vehicle (employee or his/her representative) shall be responsible for all
legal liabilities during the leased period.

GENERAL
a. Scheme 1: For the purpose of this policy, employees are not allowed to take on hire car of

another employee of the company and claim hire car charges. Such practices will be
treated as violation of code of conduct and disciplinary action including termination will be
taken against employees found guilty of such practices.
b. The company may, at any time, at its sole discretion withdraw the facility of company
leased car scheme.
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c. Every employee is expected to use company-leased cars only for official and personal
purposes. In case unauthorized or improper use or violation of the Provision of the Motor
Vehicles Act 1988, of the leased car is reported to the company in addition to withdrawal of
the facility the same may also lead to disciplinary action.

d. In case a new employee joins and wishes to bring his existing car which was on lease to
some other leasing company, in such case same shall be treated as pre-owned car and the
terms and condition of the leasing company shall be applicable.
e. Once a purchase order for a car under this scheme is made by the leasing company, and if
an employee wishes to cancel the order, in such case the employee is bound to pay all
such expenses incurred by the leasing company towards such cancellation. No income tax
benefit shall be given under this scheme for such expenses incurred due to cancellation.

DOCUMENTS
Scheme 1:
An employee opting for Car Hire will be required to submit the following documents:
o Registration Certificate(once unless the vehicle has been changed)
o Latest insurance papers of the vehicle( to be submitted every year on renewal of
the car hire agreement)
o Signed car hire agreement
o Copy of driving license of Driver
o Copy of PAN card of Car owner
o One cancelled cheque from car owner (for electronic Third Party Transfer)
o The registration and and the insurance needs to be in the name of the same
Third Party
Scheme 2:
Documents to be retained by:
DOCUMENTS
Car Registration Certificate
Vehicle Insurance
Lease Letter

ORIGINAL
Admin dept.
Employee
Employee

PHOTOCOPY
Employee
Admin dept.
Admin dept.

Amendments / Exception / Interpretation

All the policies & procedures mentioned in this are subject to modifications from time to time at
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the discretion of the management. The decision of the CHRO at Reliance Communications
shall be final and conclusive in the event of an interpretation of a provision of the policy.

Abbreviations
CV Car Value (Ex-showroom cost + Registration + Stamp Duty + Taxes)
RV Residual Value (Car Value Principle Paid through monthly lease rental)
MV Market Value of the car
OBV Outstanding Book Value
Lessor The Leasing Company
Lesee The employee of Reliance Communications and/or its group companies
VAT Value Added Tax
VLCF Vehicle Lease Contract Form

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Vehicle Lease Contract Form

This Vehicle Lease Contract Form (VLCF) stipulates the commercial and other terms and
conditions under which the vehicle [as specified below] is being provided under lease to M/S
xxx (lessee) under terms of the Master Lease Agreement between lessee and M/S xxxx xxxx
(lessor).
[VLCF Form]
.
.
.
.
Declaration of acceptance of terms and conditions of the VLCF by lessee - We hereby
declare that we have read, understood and accepted the terms and conditions as specified in
the VLCF (including terms, conditions as specified overleaf and which forms part of this VLCF);
we further undertake that the undersigned has the necessary authority to execute the VLCF
and that this VLCF forms a binding contract on our Company in accordance with Master Lease
Agreement (MLA) signed between our Company and M/S xxxx xxx and this VLCF forms an
integral part of such MLA.

For and on behalf of xxxx

Sign:
Name:
Designation:

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Declaration of acceptance of VLCF by lessee designated user - I hereby declare that I

have read, understood and fully accept the commercial and other terms and conditions
(including terms and conditions as specified overleaf) under which the vehicle, as specified in
this VLCF, is being provided to me by my employer being M/S xxxx (name of lessee) under a
lease agreement/arrangement entered into by my employer and M/S xxxx xxx xxxx and legal
owner of the vehicle).
Name: (Lessee designated user/person in possession of the vehicle)

Sign:

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1) Commencement - The vehicle as specified in this VLCF is provided under a lease

agreement between lessee and lessor as specified in this VLCF and the execution of this
VLCF forms a binding contract between lessee and lessor. The Process of providing vehicle
under this VLCF shall commence only on payment to lessor of the advance payment amount
as specified in this VLCF without which no processing shall be undertaken by the lessor.
2) Specified Dealership - The vehicles shall be procured from Lessor specified dealerships;
Lessee's preferred dealership, if any, shall not be considered otherwise than in exceptional
circumstances.
3) Communication with Dealership - The Lessee shall not communicate with dealers once a
VLCF has been executed. The Lessor does not take any responsibility for delays in order
processing and or delays/issues in relation to service and maintenance of the vehicle etc in
such cases. Any and all communication in relation to order processing, vehicle servicing and
maintenance shall be through Lessor only.
4) Place of delivery - To be mutually decided; in most cases, the delivery shall be organized
by Lessor on behalf of Lessee and Lessee shall obtain delivery from premises of dealer.
5) Fuel and additional expenses in case of delivery - In case of delivery of vehicle, by
Lessor (as opposed to Lessee taking delivery from dealer premises) expenses incurred by
Lessor like fuel etc. shall be reimbursed to Lessor; Lessor shall raise an invoice on the Lessee
for the same.
6) Specified date of delivery and or specified/preferred registration number - In cases of
specified date of delivery and or specified registration number, the Lessor shall try to arrange
the same on behalf of Lessee, subject to availability of vehicle, availability of special number
and other factors like RTO issues which are beyond control of any person. Advance intimation
needs to be provided to Lessor and such intimation needs to be specified in the QRF. The
Lessor will charge reasonable processing fees for the same and any other costs, charges etc
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to be incurred in relation to the same shall directly be paid by Lessee. In absence of such
payment of fees and expenses, if any, order processing shall not be done and non-adherence
to specified date of delivery and or non-availability of specified/preferred registration number
shall not be considered as non-compliance under this VLCF and the obligation of the
lessee/lessee designated user shall continue under this VLCF and the MLA.
7) In transit damages - Any damages to the vehicle whilst in transit from dealer premises to
mutually agreed place of delivery shall be treated as an accident and covered under insurance
policy and insurance services.
8) DAF (Delivery Acknowledgement Form) - The DAF of the lessor has to be filled in and
singed at time of delivery of the vehicle and handed over to Lessor designated person/entity
and if the same is not possible, then within 5 working days from date of delivery; the original
copy of signed DAF should be reach the Lessor either by way of hand delivery, email of
scanned copy, courier at registered office address of Lessor; the non-delivery of signed DAF
by Lessee to Lessor shall not affect rights of Lessor and in case of non-receipt of signed DAF,
for purposes of billing (invoicing) the VLCF date shall be used.
9) Vehicle Registration - The Lessor shall register vehicles under all applicable provisions of
the MV Act, 1988 and or any other statutory rules and regulations in force at time of such
registration. The Lessee shall provide such documents, as may be specified by the Lessor for
enabling such registration.
10) Delivery of vehicle without valid registration - The delivery of vehicle without valid
registration shall not be done under any circumstances. The Lessee shall not request such
delivery; if, under any situation, such delivery is made, then Lessee unconditionally agrees to
bear any and all expenses, costs, liabilities, obligations resulting from any issue or event
resulting (either directly or indirectly) from such event of delivery.
11) Loss of vehicle related documents, keys etc In case of loss of vehicle related
documents like RC (Registration certificate), Insurance Cover Note or Insurance policy, keys of
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the car etc lessee/lessee designated user shall immediately inform the lessor and lessor shall
arrange to provide necessary duplicate for a processing fee (INR 500 per case) along with
actual cost of providing such duplicates including government levies, duties, taxes as may be
applicable.
12) Liability under Motor Vehicle Act, 1988 The lessee/lessee designated user shall be
liable for any and all violations under the Motor Vehicles Act, 1988 (including but not limited to
driving without a valid driving license for that category of vehicle, driving under the influence of
alcohol or other narcotic substances, transportation of any narcotics, banned substances, etc.
or vehicle being involved in any kind of illegal trafficking) and rules/regulations framed there
under and the lessee/lessee designated hereby unconditionally provides complete indemnity to
the lessor and any loss, damage (direct or indirect), expenses suffered/incurred by lessor shall
be recovered from lessee/lessee designated user and that lessee/lessee designated user shall
fully cooperate with lessors instruction in case of any liability or violation of the Motor Vehicles
Act, 1988 and shall also be responsible for immediate intimation to the lessor of any such act
of commission or omission.
13) Insurance Unless otherwise agreed upon in writing, the lessor shall insure the vehicle
during the entire duration of the VLCF through Lessors preferred insurer. Lessee will not
insure the vehicle either at inception or at time of renewals; any such attempt may make the
VLCF invalid i.e. Lessor can cancel VLCF and implement a foreclosure of the vehicle or
otherwise in case of double insurance by both lessee and lessor, lessor has the right to
recover expenses from lessee or lessee designated user. In case of any accident, damage or
theft of vehicle, lessee/lessee designate user shall immediately intimate the lessor in writing
within 24 hours and will provide such information and in such form as may be requested by
lessor or by the insurer and lessee/lessee designated user to furnish such bonds and or
indemnity to lessor as may be requested by lessor or insurer in case of any 3rd party liability.
In such case of accident, theft or loss of vehicle, lessee/lessee designate user shall also obtain
necessary FIR at his own cost and risk from relevant police station and fully assist the lessor in
settlement of claims from insurance companies. All claims unpaid or rejected by insurance
company for whatsoever reason (s) shall be recovered from lessee/lessee designate user. In
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case of theft of vehicle, Lessee/Lessees designated user will have to provide the final case
closure report by the court of law at his/her own cost and risk. Lease rental will continue to be
paid till such time claim is settled. In case of un-availability of vehicle due to accident, damage,
repair, theft etc, the payment of lease rental shall continue uninterrupted.
14) KM and contract duration Lessee hereby accepts that in case M/S xxxx Total
(maintenance package) has been chosen, then monthly information capture form available on
the web portal will be filled up (or such information as and when requested by lessor shall be
provided immediately); in case of actual KM exceeding contracted KM on contract end date,
excess KM charge shall be calculated and recovered from lessee/lessee designated user
irrespective of whether vehicle is in possession of the lessee/lessee designated user or not.
Also, if KM usage at any point of time during the lease tenure,, on a time proportionate basis
vary more than 10% of budgeted KM as specified in this VLCF then lessor reserves the right to
suitably amend the commercial terms and conditions of the VLCF. Note that excess KM
charges shall be calculated and obligation related thereto will be settled even in case of car
lease continuing under new VLCF (renewals, extensions etc).
15) Scope of FMS - The definition, inclusion, scope and coverage of various FMS services
designated as Safety, Total, Comfort shall be as per product/service brochure of such services
respectively and signing and acceptance of the VLCF shall be construed that the lessee and/or
lessee designated user is fully aware of terms and conditions of such service as applicable on
date of signing of this VLCF. The applicable version of the product/service brochures
specifying the scope and coverage of services for this VLCF will always remain available on
the web portal of the lessor and available to the lessee/lessee designated user for viewing. Any
instruction from lessor to lessee by way of emails, verbal communication and or through web
portals in relation to FMS shall be adhered to by the lessee/lessee designated user.
16) Vehicle Return Process at end of Lease - On early or normal termination of VLCF, the
vehicle shall be returned at a place as mutually agreed between Lessee and Lessor; any and
all cost and expenses incurred to recover vehicle from any other place not agreed to shall be
borne by Lessee. All vehicle documents (including RC book, Insurance policy, Permits, Fitness
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Certificates etc) along with Keys and Duplicate Keys shall be returned along with the vehicle.
The vehicle should be in standard condition i.e. condition considered to be standard
considering normal wear and tear with due reference to tenure and KM usage of the vehicle.
Non -standard vehicle condition will include all such events like alteration of the vehicle, fitment
of accessories (whether manufacturer approved and or recommended or not), repainting etc
which has been done without written approval of Lessor. Evaluation of condition of vehicle
shall be done by Lessor along with experts (if necessary) from dealers/manufacturers At time
of return of vehicle, Lessor shall fill up the Vehicle Return Report capturing the above
information along with other relevant information and such Return Report shall be
countersigned by the Lessee and cost of any or all shortfall of physical items and justified
costs of repairs to restore the vehicle to the standard condition shall be payable by
Lessee/Lessees designated user.
17) Method of communication and or intimation Any communication with reference to this
VLCF or anything directly or indirectly related to the vehicle or this VLCF shall be through
raising of online tickets through the web portal of the lessor and any communication without
ticket reference shall not be entertained; in absence of ticket system availability (downtime etc)
an email to service@tranzlease.com shall suffice.
18) Lessor instructions During the tenancy of the lease, lessor may provide various
instructions to enable better services and comfort of the lessee/lessee designated user and all
such instructions including information request from lessor should be adhered to/provided.
19) Nonpayment of lease rentals In any case where the lease rental is not paid for 2
consecutive months by lessee, the lessor has the right to terminate the VLCF and recover the
foreclosure value (as defined in Clause 14 of the MLA and as summarized in Clause 21
below); in absence of such foreclosure value payment by lessee the lessor has the right to
automatically transfer the VLCF to the lessee designated user or person in possession of the
vehicle and such person shall be construed as the lessee and all provisions of the MLA shall
become applicable to such person in possession of the vehicle and all obligations of the lessee

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including unfulfilled obligations of the past in relation to the vehicle shall be assigned
automatically to the person in possession of the vehicle.
20) Termination of contract and consequences Contract shall deemed to be completed
upon (a) expiry of the lease tenure specified in the VLCF or (b) upon completion of the
Contracted Kilometers specified in the VLCF, whichever occurs earlier and (c) by way of early
termination as specified in the MLA. On termination of contract, in case the lessee/lessee
designated user wishes to continue using the leased car, in such case a new VLCF shall be
executed between Lessor and Lessee at mutually agreed terms; in case the lessee/lessee
designated user wishes to buy the vehicle then such option shall be made available; in case
the lessee/lessee designated user wishes to surrender the vehicle back to the Lessor then
such vehicle shall be surrendered as per the method laid down in clause 16. In case of
surrender of vehicle on contract termination under case (c) or under case (b) above (i.e.
completion of contracted Kilometreage) then such surrender shall be considered as Early
Termination and foreclosure value (as defined in Clause 14 of the MLA and as summarized in
Clause 21 below) shall be paid to Lessor.
21) Foreclosure value For purposes of Clauses 19 and 20, foreclosure value (as defined in
Clause 14 of the MLA) shall mean sum total of (a) present value of all future lease rentals
(unexpired period from date of termination to contract end date as specified in the VLCF);
lease rentals to exclude charges towards FMS services if included in such lease rental)
discounted at implicit rate of interest (b) present value of estimated residual value at
contractual end date as specified in the VLCF discounted at implicit rate of interest (c) Arrear
dues of lease rental and/or any other arrear dues including excess KM charges if applicable in
the VLCF (d) prepaid road tax and prepaid insurance (e) cost of all repairs and maintenance
and all cost and charges incurred by lessor to render the vehicle in good and proper working
condition (including all cost, charges for repossession of the vehicle and liquidated damages if
any) (f) foreclosure fee of 2% on sum of (a) and (b). The sum total of (a) to (f) shall be reduced
by the highest offer sale value (offer received by lessor from open market sources) of the
vehicle in case the vehicle is surrendered to the lessor. In case the vehicle is surrendered as
specified in Clause 20 above and the VLCF specifies Zero Liability Plan then foreclosure
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value shall exclude items (a) and (b). Any security deposit received will be adjusted from the
sum total as specified above.
22) Repossession rights of the lessor In case of non-payment of lease rentals or nonsurrender of the vehicle after end/early termination of the VLCF, the lessor has the
unconditional rights, as the owner of the vehicle, to repossess the vehicle from the person in
possession of the vehicle and such repossession can be made by lessor without any prior
intimation and without necessity of recourse to any other legal/judicial process. Such
repossession shall not affect the rights of the lessor under clause 19 of this VLCF.
23) Transfer and or assignment Lessee/lessee designated user cannot transfer and or
assign any rights on the vehicle, direct or indirect (including transferring possession of the
vehicle to 3rd party including family members) without prior written consent of the lessor under
any circumstances whatsoever.
24) Non-compliance with terms and conditions of VLCF - In case of any intentional and or
unintentional non-compliance of the aforementioned terms and conditions, the same shall be
considered as an event of default by lessee/lessee designated user and all provisions in
relation to event of default as contemplated under this MLA shall apply i.e. the lessor can
terminate the VLCF and apply foreclosure clause no 14 of the MLA

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ANNEXURE 1
Request for car under Car lease policy
(Employee Need to sign this form and hand it over to Administration Department)
Date: ____________________
To,
The Head Human Resources,
<Companys Name>
<Location>
Subject: Request for Car under the Car Lease Policy
Dear Sir/Madam,
I wish to apply for a car under the Companys policy on Car Lease Policy. I hereby wish to
inform you that the said car once procured shall be used for the purpose of official and
personal use under Companys Car Lease Policy.
On demand, I will remit the requisite amount equivalent to 20% of the of the car value for
booking the car and authorize the Company to debit to my CTC by such monthly car lease
rental amount and expenses as required. My preference of the car will be <Model>, Color,
Manufacturer costing Rs.<on road price under corporate registration> approx.
I have gone through the policy document and agree to abide by the rules and regulations as
stipulated therein and hereby request your approval to advice the Administration Department
for its procurement.
Thanking you,
Yours faithfully
_________________ _____________________________
<Employee Name & Signature> Approved by Head Human Resource
<SAP No>, <Employee Grade> <Name & Signature>
<Designation>, <Department>

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Annexure 1(a)
Authorization form for Company Car Lease
(Employee Need to sign this form and hand it over to the Administration Department)
Date: ____________________
To,
The Head Human Resources,
<Companys Name>
<Location>
Subject: Authorization to debit and recover such expenses from the salary incurred under the
car lease.
Dear Sir/Madam,
I have been allotted a leased car under the car lease scheme by the Company. In this
reference I hereby submit a signed copy of the agreement along with the approved request
form duly signed and approved by your good self.
On my request, the Company has arranged/agreed to arrange for the car under the Company
lease scheme, and I have been informed of, and I hereby agree to abide by the terms and
conditions of such lease scheme provided by the leasing company and as mentioned in the
Companys Car Lease Policy. I understand that the Company has given me the right of
possession and use of the car and I have no ownership rights on the said car till the car lease
tenure, as opted by me, is complete and I have fulfilled all the financial obligations to the lessor
of the car at the end of the lease tenure. I also understand that it is the sole responsibility of
mine from time to time to manage the maintenance, upkeep and security of the car and shall
strictly follow the law of the land, rules and regulations specifically governed under the Motor
Vehicles Act, 1988.
I authorize you to directly debit my compensation and benefits with the Equated Monthly
Installment (EMI) and any other applicable interest charges, VAT, Service Tax and other taxes
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and statutory levies. I completely understand that at the end of the lease tenure, I will have to
complete the final financial settlement with the leasing company i.e. the lessor of the car and
pay any such dues or taxes that I am required to pay.
In the event of my separation (resignation, termination, retirement) from the Company before
the end of tenor, I agree to purchase the car by paying directly to the leasing company (lessor)
such outstanding amount together with interest and other charges, if any. In the event of any
default of payment committed by me, I authorize the Company to take possession of the car
and handover the car back to the leasing company and deduct any such liability, commercial or
otherwise arising out of such action from my final settlement. Incase if nothing is recoverable
from the final settlement, the Company shall proceed with such legal action as it may deem fit.
I also understand from the Companys Car Lease Policy that I shall be sole responsible for
taking care of the car leased to me and in the event of theft/total loss of car due to accident, in
such eventuality I shall be responsible to pay the monthly car rental and any such expenses
incurred till such time the insurance company settles the claim. I am also aware of the legal
consequence, if I abscond with the car without fulfilling the car leasing term and violation of the
agreement that I signed with the lessor and/or with the Company. All such liability either
commercial or legal or otherwise incurred by the lessor and the Company shall be borne by
me.
I understand that a perquisite value shall be considered for computation and deduction of
Income Tax directly from my compensation, as and when applicable under Income Tax Act and
rules during the car lease tenor as well as at the point of transfer.
I hereby certify that I have read and understood and accepts all the terms and conditions
mentioned in the Companys Car Lease Policy and mentioned in the Vehicle Leasing Contract
Form.
_____________________________
<Employee Name>, Signature & Thumb Impression

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Annexure - 2
AGREEMENT
(Employer Employee Agreement on a Stamp paper of appropriate value as an agreement)
This Agreement is made at on this day of (Two
thousand) between , a company
registered

under

the

Companies Act,

1956

and

having

and

its

registered

office

corporate/branch

at

office

at., (hereinafter called the Company which expression shall

include

its

successors

and

assigns

of

the

one

part

and

Mr./Ms.

son/daughter/wife of Mr.
resident of . . (hereinafter
called the Employee which expression shall include his/her heirs, successors and assigns) of
the other part.
WHEREAS the Employee is working as . with the Company since

AND WHEREAS for efficient discharge of duties, the Employee has requested the Company to
provide him / her with official transport.
AND WHEREAS the Company has agreed to provide to the Employee a .
car (the car) on the following terms and conditions, to which the Employee agrees.
NOW THEREFORE THIS AGREEMENT WITNESSES AND it is hereby agreed by and
between the parties as follows:1. That the Employee acknowledges that Employer has executed a commercial contract dated
__________ with <Leasing Company Name>
2. USE AND PURPOSE
2.1 That the car provided as per the aforesaid Contract referred to in Clause 1 by the Employer
to the Employee shall be used by the Employee only for official / personal use, and the
Employee shall not use the vehicle for any illegal purpose, or in contravention of the Motor
Vehicles Act,1988 or any other applicable statute or rules or regulations.
2.2 That the Employee specifically agrees undertakes and confirms that he/she shall not
permit any person to drive the car without a valid driving license.
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2.3 That the Employee shall verify and check the car, and shall not hold Employer liable in any
manner whatsoever for the defect in the car.
2.4 In case the Employee does not buy the car, the Company shall be free to surrender the
same to the lessor. In case of any loss / damage suffered by the Company on this account, the
same will be recovered from the Employee. The Employee hereby irrevocably authorizes the
Company to adjust the amount of loss / damage suffered by the Company from the deposit
and / or from the dues, if any, payable by the Company to the Employee. The shortfall, if any,
will also be paid by the Employee.
2.5 That the Employee shall not create any charge, encumbrance or lien on the car nor will
permit its use by anyone else.
2.6 That the lessor shall keep the car comprehensively insured and the employee shall pay
directly to the lessor towards cost of such Insurance premium
3. INDEMNIFICATION BY EMPLOYEE
3.1 The Employee agrees and confirms that under the contract mentioned in clause 1 above,
the Company has undertaken certain obligations to be fulfilled on behalf of the Employee., the
Employee hereby agrees and indemnifies the Company from any loss / damages, and/or any
other liabilities arising from the Employee's negligence in performance of the obligations to be
fulfilled under the aforesaid Contract.
3.2 The Company has provided copy of the aforesaid Contract to the Employee and the
Employee has read and accepted the obligations imposed on Company under the aforesaid
Contract and as per the Companys Car Lease Policy, and further indemnifies the Company
from any damages, and/or any other liabilities arising to it as a consequence of the Companys
performance of the Contract.
3.3 That the Employee shall provide full co-operation required for processing an insurance
claim. In the event of the being declared VOID due to non-compliance of traffic rules and
regulations by the driver, the employee would be liable to pay all losses and/or damages.

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3.4 Further, should there be any other liability on the Company, as a consequence of the
Employee's use of the Car; the Employee shall indemnify the Company from the same.
3.5 In the event of a Theft/Total Loss of the Car, the Employee agrees and undertakes that
he/she shall file the F.I.R. and other documents required by the Insurance Company to assist
the leasing company in recovering the insured value from the Insurance Company.
3.6 In no event, Employee shall make any claim against Company or hold the Company
responsible for any loss or damage to the person or property of the Employee arising out of the
use of the Car by/for the Employee.
3.7 Any expenses incurred towards running and maintenance of the Car and such other
expenses as may be attributed to the Employee by way of possession/usage of the Car shall
be borne by the Employee and will include cost of transferring the ownership of the Car at the
end of the lease period.
3.8 The Company would recovery from the Employees salary any charges / levies arising from
the possession or use of the leased car by an Employee.
3.9 In the event of an Employee absconds with the Car, in such an event the Company may
proceed against the Employee on criminal ground and file a case of theft or such similar
measures to protect its best interest, at the cost and consequences of the Employee.
3.10 The Employee by virtue of possession of the Car accepts the risks for the Car of he/she
has custody and is liable in accordance with the provisions under the Motor Vehicles Act, 1988.
3.11 In case the Employee fails to fulfill any of his/her obligations as mentioned above or as
per the Master Lease Agreement (MLA) signed between the Company and Lessor or the
Vehicle Lease Contract Form (VLCF) and as a result of which the Company suffers any loss or
damage, the Employee shall in such event be liable to compensate the Company for all such
loss / damages, including legal costs and expenses caused by Employees default(s). The
Company shall have right to adjust all such amounts from the Employees salary or against the
settlement of dues.
4. Severance of employment with Employer
4.1 That in the event the Employee leaves the employment of the Company, or the Employee's
employment with the Company is terminated, the Employee undertakes to either foreclose the
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car lease by either entering into a Individual Lease Plan offered by the leasing company or Buy
Back the Car or transfer the agreement to another consenting employee or to his next
employer, if acceptable to the leasing company, as a pre condition or may surrender the Car to
the leasing company
4.2 The Employee shall take the responsibility to confirm his/her resignation and exits the
Company or wishes to exit the leasing arrangement and shall give a prior notice of 30 days to
the administration department and shall inform the leasing company for taking necessary
action on the leasing scheme availed.
4.3 Incase if the advance notice is not served by the Employee, in such scenario the Employee
is liable to pay the lease rental as may be applicable till such time the leasing company gives a
NOC to the Company.
IN

WITNESS Name of the Witness

Name of the Witness

WHEREOF the parties

have

signed

these

presents, on the day,

month and year first
above

mentioned.

Employee Name
SAP No

Address

of

the Address of the Witness

Witness
Residential Address
Contact No:Personal Mail Id:__________________

__________________

__________________

Signature

Signature

Signature

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