Motor Vehicles Act: Section 104 – Restriction on grant of permits in respect of a notified area or notified route

Where a scheme has been published under sub-section (3) of section 100 in respect of any notified area or notified route, the State Transport Authority or the Regional Transport Authority, as the case may be, shall not grant any permit except in accordance with the provisions of the scheme:

Provided that where no application for a permit has been made by the State transport undertaking in respect of any notified area or notified route in pursuance of an approved scheme, the State Transport Authority or the Regional Transport Authority, as the case may be, may grant temporary permits to any person in respect of such notified area or notified route subject to the condition that such permit shall cease to be effective on the issue of a permit to the State transport undertaking in respect of that area or route.

Simplified Explanation

Section 104 of the Motor Vehicles Act imposes restrictions on the issuance of permits to private operators for areas or routes that have been notified for public transportation services provided by State Transport Undertakings (STUs). The purpose of this provision is to prioritize public transport services operated by state-run entities over private operators in specific areas or routes that are deemed critical for public interest.

Key Aspects of Section 104

• Notified Area or Notified Route:
  • A notified area or notified route refers to a region or transport route that has been earmarked by the state government for exclusive or priority operation by State Transport Undertakings (STUs).
  • The notification is made under a transport scheme that typically aims to improve public transport accessibility, affordability, and reliability for the general population.
• Restriction on Private Operators:
  • Once an area or route is notified for state-operated transport services, private operators are generally restricted from obtaining permits to operate in the same area or on the same routes.
  • This means that no new permits will be granted to private operators for public transport services (e.g., buses, contract carriages) on those routes, unless certain conditions are met or exceptions are made.
• Exceptions to the Restriction:
  • In certain cases, private operators may still be granted permits in a notified area or route, but only under special circumstances, such as:
    • Supplementary Services: When the state-run services are not sufficient to meet the demand or public needs, private operators may be allowed to operate to supplement the STU’s services.
    • Special Permission: The state government may issue special permissions to private operators if it is in the public interest to do so. However, such permissions are often subject to strict conditions.
• Objective of the Restriction:
  • The primary goal of this restriction is to ensure that the State Transport Undertaking (STU) can operate effectively and without direct competition from private operators on designated routes.
  • It helps the government maintain control over key public transport services, especially in areas where private operators may not be willing to serve due to profitability concerns, or where unregulated competition could lead to chaotic or unsafe services.

Impact on Stakeholders

• For State Transport Undertakings (STUs):
  • STUs benefit from reduced competition, enabling them to focus on providing reliable and affordable public transport services without the pressure of competing with private operators on the same routes.
• For Private Transport Operators:
  • Private operators face restrictions in entering notified areas or routes, which can limit their opportunities to operate in certain regions. However, they may still be granted permits in non-notified areas or under special conditions, such as offering supplementary services.
• For the Public:
  • The public can benefit from the focused efforts of the STU, which is tasked with providing consistent and regulated transport services. However, in some cases, the absence of competition may affect service quality, which is why supplementary services by private operators may be allowed in certain situations.
• For the State Government:
  • The government can ensure that transport services in essential areas are centrally managed and regulated. This can improve public transportation systems in underserved areas, promote social equity, and ensure better transportation accessibility for all.

Example of Application

Imagine a state government designates certain rural routes as “notified routes” for the State Transport Undertaking. This means that only state-run buses can operate on these routes. Private bus operators would be restricted from getting permits to serve the same routes, ensuring that the STU can manage and provide reliable services to these rural areas without facing direct competition from private companies.

However, if the public demand exceeds the capacity of the STU’s services, the government might issue special permits to private operators to run additional buses to meet the demand, ensuring that the public still has adequate transportation options.In summary, Section 104 restricts the granting of permits to private operators in areas or on routes that have been notified for State Transport Undertakings (STUs). This provision is designed to prioritize state-run services, ensuring that public transport needs are met in critical areas without unregulated competition from private operators. However, exceptions can be made when necessary to meet public demand or under special circumstances.