Rajya Sabha Passes Motor Vehicles Bill; Stricter Penalties For Traffic Violation
City traffic on a highway in Mumbai, India. (Photographer: Abhijit Bhatlekar/Bloomberg News)

Rajya Sabha Passes Motor Vehicles Bill; Stricter Penalties For Traffic Violation

Bookmark

The Rajya Sabha passed a bill to tighten road traffic regulations such as issuance of driving licence and imposed stricter penalties for violations in an attempt to improve road safety.

The Upper House passed the Motor Vehicles (Amendment) Bill, 2019 with 108 votes in favour and 13 against it, with three amendments moved by Road Transport and Highways Minister Nitin Gadkari.

The legislation was passed by the Lok Sabha on July 23 but the bill will be sent to Lok Sabha again because of a typo.

Replying to a debate on the bill, Gadkari allayed concerns of states, saying the Centre was not encroaching on any of their rights including the right to levy vehicle registration charge and permit fee, besides posting of officials.

Not a single penny of state revenue would be taken by the Centre, he asserted.

Also, the rights of the states to set up driving training institutes will not be tinkered with.

The legislation provides for stricter punishment for various traffic related offences as well as higher penalties, including a compensation of Rs 5 lakh for death and Rs 2.5 lakh for grievous injury in a motor vehicle accident case.

Gadkari said the legislation will instil fear of law in people who violate traffic rules as an intelligent traffic system will monitor traffic offences.

The minister said India was facing shortage of 22 to 25 lakh drivers and to fill this gap, driver training institutes were planned pan India and the Centre was ready to provide Rs 1 crore subsidy for each centre.

Also read: Government Proposes Scrapping Of Vehicles Older Than 15 Years

He said such centres were not needed in metropolises like Delhi, Mumbai or Chennai but in remote rural areas to uplift tribals and poor and 1,000 such centres were planned.

The minister also allayed fears of members regarding roping in of corporates, saying no rights were being given to companies and in fact a few firms had come forward with Rs 20-25 crore free-of-charge training centres under Corporate Social Responsibility.

Gadkari said the process for obtaining driving licenses would now be computerised and anyone, whether a minister or MP, will get licenses only after passing online tests.

He said the government has no intention to intervene with the power of states and state transport corporations were free to run their buses.

He advocated the London transport model, stating that many state government undertakings had turned NPAs and the government was also exploring bringing in foreign funds.

The minister made it clear that vehicle registration rights remained with the states and asserted that the Centre was not benefitting by even a rupee.

He also stressed on the need to promote electric buses and having a transport policy. He said a 265-seat bus was planned between Dhaula Kuan and Manesar.

The bill proposes a National Transportation Policy for ushering in guidelines on the transportation of goods and passengers. The minister said it will be framed only after holding consultations with the states.

Also read: Auto Firms Cut Production By 11% In April-June, Says India Ratings

Once the bill becomes a law, the new vehicles will be registered at the dealers level and it will eventually remove buyers' interface with the registration authorities.

The bill, which was pending for approval in the Rajya Sabha, had lapsed after the term of the 16th Lok Sabha ended.

It proposes Rs 10,000 fine for not giving way to emergency vehicles and Rs 10,000 for driving despite disqualification. Aggregators violating driving licences will be fined up to Rs 1 lakh.

The proposals are based on the recommendations of transport ministers from 18 states, which were vetted by a standing committee of Parliament.

The bill includes penalties in the range of Rs 1,000-2,000 for over-speeding.

Driving without insurance will be punishable with Rs 2,000 fine, while driving without helmets will attract Rs 1,000 penalty and 3-month suspension of licence.

Also, the guardian/owner will be deemed guilty in case of road offence by juveniles, while registration of the vehicle will be cancelled.

As per the new provisions, "guardian/owner shall be deemed to be guilty and there will be a penalty of Rs 25,000 with three years imprisonment and cancellation of registration of the Motor Vehicle".

Traffic violations would now attract a penalty of Rs 500 in place of Rs 100 earlier, while disobedience of orders of authorities will attract a minimum penalty of Rs 2,000 in place of Rs 500 earlier.

Also read: Working Capital May Get Expensive For Auto Dealers Amid Crippling Slowdown

Penalty for unauthorised use of vehicles without licence has been proposed at Rs 5,000 while those driving without licence will have to shell out the same amount and those found driving despite disqualification would be fined Rs 10,000.

Penalty for dangerous driving would be increased to Rs 5,000 from Rs 1,000, while drunken driving under the proposed new law would attract a fine of Rs 10,000.

"If aggregators are found violating licensing conditions, they will be charged a sum of up to Rs 1 lakh" while overloading of vehicles would attract a penalty of Rs 20,000.

Earlier participating in the debate, members raised concern over the growing number of road accidents and said that there should be a compensation mechanism for the deceased.

The Congress alleged that the Centre has "hoodwinked" the Rajya Sabha on the bill as it was "defective" and not in the form passed in the Lok Sabha last week.

Also read: Opposition Parties Write To Rajya Sabha Chairman Over Passing Of Bills Without Scrutiny

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.