(1) Subject to the provisions of sub-section (3), a Regional Transport Authority may, on an application made to it under section 73, grant a contract carriage permit in accordance with the application or with such modifications as it deems fit, or refuse to grant such a permit:
Provided that no such permit shall be granted in respect of any area not specified in the application.
(2) The Regional Transport Authority, if it decides to grant a contract carriage permit, may, subject to any rules that may be made under this Act, attach to the permit any one or more of the following conditions, namely:—
(i) That the vehicles shall be used only in a specified area or on a specified route or routes;
(ii) That, except in accordance with specified conditions, no contract of hiring, other than an extension or modification of a subsisting contract, may be entered into outside the specified area;
(iii) The maximum number of passengers and the maximum weight of luggage that may be carried on the vehicles, either generally or on specified occasions or at specified times and seasons;
(iv) The conditions subject to which goods may be carried in any contract carriage in addition to, or to the exclusion of, passengers;
(v) That, in the case of motor cabs, specified fares or rates of fares shall be charged and a copy of the fare table shall be exhibited on the vehicle;
(vi) That, in the case of vehicles other than motor cabs, specified rates of hiring not exceeding specified maximum shall be charged;
(vii) That, in the case of motor cabs, a special weight of passengers’ luggage shall be carried free of charge, and that the charge, if any, for any luggage in excess thereof shall be at a specified rate;
(viii) That, in the case of motor cabs, a taximeter shall be fitted and maintained in proper working order, if prescribed;
(ix) That the Regional Transport Authority may, after giving notice of not less than one month,—
(a) Vary the conditions of the permit;
(b) Attach to the permit further conditions;
(x) That the conditions of the permit shall not be departed from save with the approval of the Regional Transport Authority;
(xi) That specified standards of comfort and cleanliness shall be maintained in the vehicles;
(xii) That, except in the circumstances of exceptional nature, the plying of the vehicle or carrying of the passengers shall not be refused;
(xiii) Any other conditions which may be prescribed.
(3)
(a) The State Government shall, if so directed by the Central Government, having regard to the number of vehicles, road conditions, and other relevant matters, by notification in the Official Gazette, direct a State Transport Authority and a Regional Transport Authority to limit the number of contract carriages generally or of any specified type, as may be fixed and specified in the notification, operating on city routes in towns with a population of not less than five lakhs.
(b) Where the number of contract carriages are fixed under clause (a), the Regional Transport Authority shall, in considering an application for the grant of a permit in respect of any such contract carriage, have regard to the following matters, namely:—
(i) Financial stability of the applicant;
(ii) Satisfactory performance as a contract carriage operator, including payment of tax, if the applicant is or has been an operator of contract carriages; and
(iii) Such other matters as may be prescribed by the State Government:
Provided that, other conditions being equal, preference shall be given to applications for permits from—
(i) The India Tourism Development Corporation;
(ii) State Tourism Development Corporations;
(iii) State Tourism Departments;
(iv) State transport undertakings;
(v) Co-operative societies registered or deemed to have been registered under any enactment for the time being in force;
(vi) Ex-servicemen.
Simplified Explanation
Section 74 of the Motor Vehicles Act outlines the criteria and conditions under which a contract carriage permit is granted by the Regional Transport Authority (RTA). This type of permit is essential for operating vehicles that are hired on a contract basis, such as taxis, cabs, and other similar vehicles that transport passengers from one point to another without stopping to pick up additional passengers.
Key Guidelines for Granting Permits
- Assessment of Application: The RTA reviews the application for completeness and accuracy, checking the details provided against required standards for vehicles and operators. This step follows the initial application process detailed in Section 73.
- Criteria for Granting Permits:
- Public Need: The RTA considers whether there is a demand or need for additional contract carriage services in the area. This assessment helps ensure that the market is not oversaturated, and services are required.
- Applicant Suitability: Evaluation of the applicant’s suitability includes checking their financial stability, past performance if applicable, and their ability to provide a reliable and safe service.
- Vehicle Standards: The vehicle must meet specific standards in terms of safety, emissions, and suitability for carrying passengers comfortably.
- Conditions Attached to Permits:
- Operational Area: The permit specifies the area within which the vehicle can operate.
- Vehicle Specifications: Details such as the type of vehicle, seating capacity, and any special features must comply with regulatory standards.
- Fare Structure: While contract carriages generally negotiate fares, some regions may have guidelines or caps on charges to prevent overcharging.
Decision-Making Process
- Consideration of Representations: If there are any objections or representations from the public regarding the application, these are considered before making a final decision.
- Transparency: The decision process is transparent, with the RTA providing reasons for approval or denial. This information is typically made available to the public.
- Issuance of Permit: If the RTA decides to grant the permit, it will issue a permit document that includes all relevant conditions and details. This permit is crucial for the legal operation of the contract carriage.
Appeals and Compliance
- Appeal Rights: Operators whose applications are denied or who wish to contest the conditions of the permit may appeal to an appellate authority designated in the Act.
- Compliance Monitoring: RTAs are responsible for ensuring that operators adhere to the terms of their permits. Regular checks and compliance monitoring are part of this responsibility.
Impact on Stakeholders
- For Operators: Clarity on the permit process and operational conditions helps operators manage their businesses within the legal framework.
- For the Public: By regulating contract carriages, the Act ensures that services are safe, reliable, and reasonably priced, thereby protecting passenger interests.
Section 74 is essential for maintaining order in the contract carriage sector, ensuring that services are provided efficiently and safely while meeting the public’s needs and maintaining high standards of service.
