Power to State Government to control road transport
Section 67 of the Motor Vehicles Act, 1988 deals with power to State Government to control road transport. A State Government, having regard to-- (a) the advantages offered to the public, trade and industry by the development of motor transport; The Act came into force on 01 Jul 1989.
1[(1) A State Government, having regard to--
(a) the advantages offered to the public, trade and industry by the development of motor transport;
(b) the desirability of co-ordinating road and rail transport;
(c) the desirability of preventing the deterioration of the road system, and
(d) promoting effective competition among the transport service providers,
may, from time to time, by notification in the Official Gazette issue directions both to the State Transport Authority and Regional Transport Authority regarding the passengers convenience, economically competitive fares, prevention of overcrowding and road safety.]
(2) Any direction under sub-section (1) regarding the fixing of fares and freights for stage carriages, contract carriages and goods carriages may provide that such fares or freights shall be inclusive of the tax payable by the passengers or the consignors of the goods, as the case may be, to the operators of the stage carriages, contract carriages or goods carriages under any law for the time being in force relating to tax on passengers and goods:
2[Provided that the State Government may subject to such conditions as it may deem fit, and with a view to achieving the objectives specified in clause (d) of sub-section (1), relax all or any of the provisions made under this Chapter.]
2[(3) Notwithstanding anything contained in this Act, the State Government may, by notification in the Official Gazette, modify any permit issued under this Act or make schemes for the transportation of goods and passengers and issue licences under such scheme for the promotion of development and efficiency in transportation--
(a) last mile connectivity;
(b) rural transport;
(c) reducing traffic congestion;
(d) improving urban transport;
(e) safety of road users;
(f) better utilisation of transportation assets;
(g) the enhancement of economic vitality of the area, through competitiveness, productivity and efficiency;
(h) the increase in the accessibility and mobility of people;
(i) the protection and enhancement of the environment;
(j) the promotion of energy conservation;
(k) improvement of the quality of life;
(l) enhance integration and connectivity of the transportation system, across and between modes of transport; and
(m) such other matters as the Central Government may deem fit.
(4) The scheme framed under sub-section (3), shall specify the fees to be charged, form of application and grant of a licence including the renewal, suspension, cancellation or modification of such licence.]
Section 67, The Motor Vehicles Act, 1988 (Act 59 of 1988).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Chairman, R. S. R. T. C. vs Santosh
Court's Decision & Legal Precedent
A vehicle is a motor vehicle under Section 2(28) of the Motor Vehicles Act, 1988 if it is mechanically propelled and adapted for use upon roads, regardless of its primary purpose or actual use. The test is the vehicle's suitability for road use and mechanical propulsion, not whether it is primarily used for agriculture or other purposes. Accordingly, Jugaads are motor vehicles subject to all provisions of the Act including registration, insurance, and driver licensing requirements, unless specifically exempted by state notification for vehicles exclusively used for agricultural purposes with appropriate specifications. This classification is enforceable through statutory authority actions, and the Supreme Court may issue directions to ensure compliance with existing law to address public safety concerns and legislative gaps.
On this section: State authority to control road transport; empowers enforcement actions against illegal vehicles
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… Fare fixed under Column 3 of Ext.P2 is the consolidated fare for the whole journey and no separate fares collected as per the fare notification issued by the State Government under Section 67 of the Motor Vehicles Act, 1988." 3.2 Learned Counsel for the petitioner submits that one of the salient features for the operation of contract carriages is a contract for a 'fixed or agreed rate of sum' as per the definition of 'contract carriage' under Section 2(7) of the MV Act. It is further submitted that …
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… A statement is filed by the State Government, which reveals that the State Government have appointed a four member committee to conduct detailed examination and to make recommendations/suggestions to the Government from time to time for issuing notification under Section 67 of the Motor Vehicles Act,1988 on the following matters namely :- (i) Fixation of fare of stage carriage, contract carriage, goods vehicles etc. on the basis of changes in the cost of petrol, diesel, spare parts, lubricants etc. and the wages and other allowances of the workers. (ii) Student's Concession …
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… The learned Counsel for the petitioner submits that, the issuance of Ext.P2 order is in excess of the specific stipulation in Ext.P1 and since, Section 67 of the Motor Vehicles Act, 1988 authorises only the Government to issue such notifications, the present order issued by the Secretary, RTA is beyond the powers conferred on him. 3. The learned Counsel, appearing for the respondents 2 to 5 primarily contends that, in fact the specific grievance expressed by the …
Made under this section, and citing it
2 instruments state that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.
Questions about Section 67
What have the courts held on Section 67 of the Motor Vehicles Act?
Chairman, R. S. R. T. C. vs Santosh (10 May 2013) is the leading judgment on this section among those set out below: State authority to control road transport; empowers enforcement actions against illegal vehicles.
How do I find court cases under Section 67 of the Motor Vehicles Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: MV Act 67, section 67 MV Act, section 67 of the Motor Vehicles Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Chairman, R. S. R. T. C. vs Santosh (10 May 2013).
What should I read with Section 67 of the Motor Vehicles Act, and has it changed?
5 other provisions in this corpus refer back to it. The rules and notifications made under it are where it actually bites, and there are 2: most recently Notification (2016), then Fares of Stage Carriage Buses (2009).
When did Section 67 of the Motor Vehicles Act come into force?
Section 67 of the Motor Vehicles Act, cited as MV Act 67, came into force on 01 Jul 1989, having been enacted on 14 Oct 1988. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions1948 words
- 88. Validation of permits for use outside region in which granted1560 words
- 51. Special provisions regarding motor vehicle subject to hire-purchase agreement, etc1199 words
- 150. Duty of insurers to satisfy judgments and awards against persons insured in respect of third party risks1102 words
- 96. Power of State Government to make rules for the purposes of this Chapter995 words
- 72. Grant of stage carriage permits868 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 16 Oct 2026. This page is not a substitute for legal advice.