The Motor Vehicles Act, 1988

66. Necessity for permits.

1. No owner of a motor vehicle shall use or permit the use of the vehicle as a transport vehicle in any public place whether or not such vehicle Is actually carrying any passengers or goods save in accordance with the conditions of a permit granted or countersigned by a Regional or State Transport Authority or any prescribed authority authorising him the use of the vehicle in that place in the manner in which the vehicle is being used:

Provided that a stage carriage permit shall, subject to any conditions that may be specified in the permit, authorise the use of the vehicle as a contract carriage:

Provided further that a stage carriage permit may, subject to any conditions that may be specified in the permit, authorise the use of the vehicle as a goods carriage either when carrying passengers or not:

Provided also that goods carriage permit shall, subject to any conditions that may be specified in the permit, authorise the use of the vehicle for the carriage of goods for or in connection with a trade or business carried on by him.

2. The holder of a goods carriage permit may use the vehicle, for the drawing of any public or semi-trailer not owned by him, subject to such conditions as may be prescribed.
3. The provisions of sub-section (1) shall not apply--

1. To any transport vehicle owned by the Central Government or a   State  Government and used for Government purposes unconnected with any commercial enterprise;
2. To any transport vehicle owned by a local authority or by a person acting under contract with a local authority and used solely for road cleansing, road watering or conservancy purposes;
3. To any transport vehicle used solely for police, fire brigade or ambulance purposes;
4. To any transport vehicle used solely for the conveyance of corpses and the mourners accompanying the corpses;
5. To any transport vehicle used for towing a disabled vehicle or for removing goods from a disabled vehicle to a place of safety;
6. to  any transport  vehicle used  for  any  other  public purpose as  may be  prescribed by  the State  Government in  this behalf;
7. to   any  transport vehicle  used  by  a  person  who manufactures or  deals in  motor vehicles  or builds  bodies  for attachment to chassis, solely for such purposes and in accordance with such conditions as the Central  Government  may,  by  notification  in  the  Offical Gazette, specify in this behalf;
8. to  any transport  vehicle owned by, and used solely for the purposes  of, any educational institution which is recognised by the Central or State Government or whose managing committee is a society  registered under  the Societies Registration Act, 1860 (21 of 1860.) or under any law corresponding to that Act in force in any part of India;
9. to  any goods vehicle, the gross vehicle weight of which does not exceed 3,000 kilograms;
10. subject  to such  conditions as  the Central Government may, by  notification in  the Official  Gazette, specify,  to any transport vehicle  purchased in  one State  and proceeding  to  a place, situated  in that  State or  in any  other State,  without carrying any passenger or goods;
11. To any transport vehicle which has been temporarily registered under section 43 while proceeding empty to any place for the purpose of registration of the vehicle;
12. To any transport vehicle used for such purposes (other than plying for hire or reward) as the Central Government may, by notification in the Official Gazette, specify;
13. to   any  transport  vehicle  which,  owing  to  flood, earthquake or any other natural calamity, obstruction on road, or unforeseen circumstances  is required  to be diverted through any other route,  whether within or outside the State, with a view to enabling it to reach its destination;
14. to any transport  vehicle used for such purposes as the Central or State Government may, by order, specify;
15. to  any transport vehicle which  is subject  to a hire-purchase, lease or hypothecation agreement and which owing to the default of the owner has been taken possession of by or on behalf of, the  person  with  whom  the  owner  has  entered  into  such agreement, to enable such motor vehicle to reach its destination; or
16. To any transport vehicle while proceeding empty to any place for purpose of repair.

4. Subject to the provisions of sub-section (3), sub-section (1) shall if the State Government by rule made under section 96 so prescribes, apply to any motor vehicle adapted to carry more than nine persons excluding the driver.

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