The Motor Vehicles Act, 1988

74. Grant of contract carriage permit. 

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:--

1. That the vehicles shall be used only in a specified area or on a specified route or routes;
2. 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;
3. 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;
4. the conditions subject to which goods may be carried in any contract  carriage in  addition to,  or to  the exclusion of, passengers;
5. 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;
6. that,  in the  case of  vehicles other than motor cabs, specified rates  of hiring  not exceeding specified maximum shall be charged;
7. 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;
8. That, in the case of motor cabs, a taximeter shall be fitted and maintained in proper working order, if prescribed;
9. That the Regional Transport Authority may, after giving notice of not less than one month,--

1. Vary the conditions of the permit;
2. Attach to the permit further conditions;

10. That the conditions of permit shall not be departed from save with the approval of the Regional Transport Authority;
11. That specified standards of comfort and cleanliness shall be maintained in the vehicles;
12. that,  except  in  the  circumstances  of  exceptional      nature, the  plying of  the vehicle or carrying of the passengers      shall not be refused;
13. Any other conditions which may be prescribed.

1. 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.
2. Where the number of contract carriages are fixed under clause (a),  the  Regional  Transport  Authority  shall,  in  considering  an application for  the grant  of permit  in respect of any such contract carriage, have regard to the following matters, namely:--

1. Financial stability of the applicant;
2. Satisfactory   performance as   a contract carriage operator including payment of tax if the applicant is or has been an operator of contract carriages; and
3. 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--

1. The India Tourism Development Corporation;
2. State Tourism Development Corporations;
3. State Tourism Departments;
4. State transport undertakings;
5. Co-operative societies registered or deemed to have been registered under any enactment for the time being in force;
6. Ex-servicemen.

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