What are 'handling charges' for?

Visited the River showroom at Indiranagar, Bangalore last weekend to check out the Indie for/with my friend. Had a fantastic experience, SA never felt like an SA and the vehicle was a joy to ride. Friend liked it as well, however she still has some reservations around EVs. Topic for another day.

Towards the end of our visit, SA shared a quote (photo above) and when I asked about 'handling charges', he gave a seemingly made up reason about it being RTO smart card-related. Having reach through hundreds of posts here, I'm aware that 'handling charges' are meaningless additions to wring extra money out of unsuspecting buyers.

Am I correct in my assumption?