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TRANSPORTATION in INDIA the Law and Its Application

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TRANSPORTATION in INDIA the Law and Its Application TRANSPORTATION IN INDIA The Law and its Application ADITYA KINI, ZEHN A product of WRI Ross Center for Sustainable Cities in association with Zehn THE LEGAL FRAMEWORK Laws applicable to Motor Vehicles in India A product of WRI Ross Center for Sustainable Cities in association with Zehn FLOW OF LEGAL AUTHORITY Constitution of India Who can Legislate: Motor Vehicles and other mechanically propelled vehicles fall under Entry 35 of List – III. Power to Make Laws under Art. 245 and Art. 246 r/w. Sch. VII. This means both Centre and State have power to legislate on matters relating to motor vehicles. 3 Lists under Schedule VII – Union (List - I), State (List - II) and Concurrent (List - III). Motor Vehicles Act, 1988 r/w. Allied Rules Consolidates law on motor vehicles Enacted by Parliament (Union) in accordance with Entry 35 Sch. VII Governs motor vehicles and motor vehicle related businesses in India State Rules Motor Vehicles Act, 1988, while a central legislation permits state governments to make rules in relation to the grant of permits and registrations to vehicles** However, these must be in consonance with the broad framework created by the Act. **Sections 65 and 96 of the Act MOTOR VEHICLES ACT, 1988 • Transportation in India is primarily governed by the Motor Vehicles Act, 1988, the Central Motor Vehicles Rules, 1989 and various state rules. • The Act creates two levels of regulation at the Central and State Levels. • The Central Government governs the kinds of registrations and permits that may be granted in relation to the intended use of the vehicle. • The State Government governs the grant of permits to vehicles under the framework of registrations/permits created by the Central Government and also creates licenses for operation of such permits. • Exception – Rent a Motor Cab/Rent a Motorcycle Schemes – License created by center and granted by state. ROLE OF THE CENTRAL GOVERNMENT Usage of Framework for Motor Vehicles Insurance for Requirements International for Motor Travel Vehicles Creation of Creation of Categories of Tribunals to Registrations address to and Permits claims under for Vehicles the Act Creation of Definition and Framework for Central Structuring of Regulation of Government Offences Motor Vehicles under the Act ROLE OF THE STATE GOVERNMENT Creation and Grant of Implementation of Registrations and License and Permits created Permit by the Central Conditions, Government including fares Creation of Framework for Control of Road Licenses to be Transport within granted to the State Transport Businesses Implementation and Enforcement of Laws Created State Taxation of Motor Vehicles by Central Government Government KEY CONCEPTS UNDER THE MOTOR VEHICLES ACT, 1988 A product of WRI Ross Center for Sustainable Cities in association with Zehn KEY CONCEPTS UNDER THE ACT • It is important to fully understand the scope and applicability of the Act to determine the best way forward for businesses (tech or non – tech oriented) that aim to provide or facilitate transportation services. • The Act clearly lays out definitions for kinds of vehicles and their intended uses along with specific forms of registrations/permits to be granted to vehicles, which in turn, are used for licensing purposes by states. • Important to remember that licensing of operators changes state to state under relevant schemes as it is the generally the role of the state to determine the licensing of operators. • The Act also lays down specific requirements to be fulfilled under each registration/ permit. TRANSPORT AND NON - TRANSPORT VEHICLES Vehicles under the Act are broadly classified into “Transport” and “Non - Transport” vehicles. Transport Vehicles Non – Transport Vehicles • Transport Vehicle includes a • Non – Transport on the other Public Service Vehicle, a goods hand relates specifically to carriage vehicle, a private personal use. service vehicle or educational institution bus. • A Non – Transport Vehicle may not be used as a Transport • A transport vehicle is a vehicle Vehicle, i.e., for a commercial used for carriage of passengers purposes. and goods. Section 2(47) of the Act UNDERSTANDING THE DIFFERENCE • X recently purchased a new car that he uses every day to drive himself to and from his office. The car is registered as a “white board” vehicle meant for private use. Can X pick up and drop off a passenger travelling in the same direction every day and charge him a fee to cover his fuel costs? PUBLIC AND PRIVATE SERVICE VEHICLES Public Service Vehicle Private Service Vehicle • A Public Service Vehicle is a Motor • A Private Service Vehicle is a motor Vehicle adapted for the use of vehicle adapted for carriage of carriage of passengers. more than 6 passengers utilized by/ on behalf of the owner for carriage • Public Service Vehicles are generally of persons for or in connection with engaged for Hire/Reward. his trade. • Includes maxi cab, motor cab, • A Private Service Vehicle cannot be contract carriage and stage engaged for hire/reward and cannot carriage. be engaged for public purposes. Sections 2(33) and 2(35) of the Act “Hire or reward” refers to any form of consideration paid by the passenger for his carriage. UNDERSTANDING THE DIFFERENCE • Mr. A operates a factory on the outskirts of Bengaluru. To help workers with their daily commute to the factory, Mr. A purchases a 12 – seater vehicle to pick up and drop off his workers every day. The vehicle is registered as a transport vehicle. On the weekends to earn some extra money on the side, Mr. A uses this vehicle to pick up and drop off passengers unrelated to his factory. Is this legally permissible? MOTOR AND MAXI CABS Motor Cab Maxi Cab • A Motor Cab is a Motor • A Maxi Cab is a motor Vehicle constructed/ vehicle constructed/ adapted to carry not more adapted to carry between 6 than 6 passengers – 12 passengers. excluding driver. • A Maxi Cab is also generally • Motor Cab is generally engaged for hire or reward. engaged for hire or reward. Sections 2(22) and 2(25) of the Act PERMITS AND LICENSES Permits Licenses • A Permit is granted by a state • A Operator’s License is not the or regional transport authority same as a Permit. Licenses are permitting use of a vehicle as a granted to an operator to transport vehicle. CONDUCT A BUSINESS OR OPERATE A VEHICLE • Granted based on the INTENDED USE of a motor • Operators must still obtain vehicle permits for vehicles to be used commercially otherwise it is illegal for them to do so. Section 2(31) of the Act CONTRACT CARRIAGE It is a vehicle engaged under a contract by Rate may be time based or point to passenger for a fixed point. or agreed rate. Contract Carriage refers to a motor vehicle that carries a Cannot stop to pick up/set down passenger/s for hire passengers during a or reward. Includes a journey. motor cab and maxi cab Section 2(7) of the Act STAGE CARRIAGE Separate Fares Fare paid either Charged to each for whole journey passenger. or stages. Stage Carriage refers to a motor Can stop to pick vehicle that carries up/set down more than 6 passengers during passengers for a journey. hire or reward. Section 2(40) of the Act GOODS CARRIAGE Includes vehicles that are utilised for Goods refer to livestock or anything carriage of goods carried by a vehicle even if not other than living constructed/adapted persons. for that purpose Goods Carriage refers to a motor vehicle Does not include that is adapted/ personal effects, constructed to carry luggage. goods. Section 2(14) of the Act UNDERSTANDING THE DIFFERENCE • Z owns a Swift Dzire. The vehicle has been granted a permit to operate as a contract carriage within the limits of BBMP. Z also possesses a commercial badge on his driving license. Z picks up a passenger ‘A’ near MS Ramaiah Hospital to be dropped off at Lavelle Road, Bangalore for a charge of INR 100. On the way, Z picks up passenger ‘B’ in Sadashivnagar to be dropped off at Chinnaswamy Stadium for a charge of INR 80. At Chinnaswamy Stadium, Z picks up ‘C’ to be dropped off at Bowring Club for a charge of INR 30. Is it permissible for Z to do this so long as he maintains his contract carriage permit? • Z also utilises the vehicle to do food and grocery deliveries once in a while. Is this legally permissible? TOURIST VEHICLES Generally used for ferrying of tourists to, from and between tourist locations and promotion of tourism within a state/country. General objections A Tourist Vehicle is a towards using tourist form of Contract vehicles as general Carriage. taxis. Section 2(43) of the Act MOTOR CYCLES AS CONTRACT CARRIAGES A product of WRI Ross Center for Sustainable Cities in association with Zehn MOTOR CYCLES UNDER THE ACT • A Motor Cycle is defined under the Act to mean a two – wheeled Motor Vehicle. • Since Motor Cycles are included within the ambit of a Motor Vehicle, they may be classified as a Motor Cab if the intended use is commercial. • Motor Cycles would hence qualify for grant of individual contract carriage permits. • However, most State Governments are either reluctant or have out-right refused to grant individual contract carriage permits to Motor Cycles citing safety, security, enforcement and insurance related concerns. RENT A MOTOR CYCLE SCHEME • The Rent a Motor Cycle Scheme, 1997 was issued by the Central Government in exercise of its powers under Section 75 of the Act. • The Rent a Motor Cycle Scheme grants licenses to operators and further provides for the grant of contract carriage permits to motor cycles operating under a Rent a Motor Cycle License. • These, however, cannot be utilised as bike taxis for point to point pick ups and drop offs.
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