Motor Vehicle Amendment Bill 2016: What’s New

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Whats New in the Bill?

1. Promotion of Innovation (Section 2B): A new section has been inserted by way of which certain mechanically propelled vehicles from the application of the provisions of this Act, notwithstanding anything contained in this Motor Vehicle Act and subject to such conditions as may be prescribed by the Central Government, in order to promote innovation and research and development in the fields of vehicular engineering.

Raghu2. Invalid Vehicle is now the Adapted Vehicle (Section 2(1)): The existing section has been differently named as Adapted Vehicles. It means a motor vehicle specially designed or constructed, or to which alterations have been made under section 52 (2) for the use of a person suffering from some physical defect or disability and used solely by or for such a person.

3. Eligibility for obtaining the driving license (Section 12 (5)): A training module completed from accredited school or establishment as notified by the Central Government would be eligible to get a driving license. However, another subsection 12 (6) prescribes that the curriculum of such training modules would be prescribed by the Central Government. The amendment reads as below:

“Notwithstanding anything contained in any other provision, where any school or establishment has been accredited by a body notified by the Central Government under any other law for the time being in force, any person who has successfully completed a training module at such school or establishment covering a particular type of motor vehicle shall be eligible to obtain a driving license for such type of motor vehicle”

4. Renewal of License for Transport Vehicle (Section 14 (2)): The renewal period of the transport vehicle (public service vehicle, a goods carriage, educational institution bus, private service vehicle) would be effective for a period of five years. Further, for proviso in the section, a driving license of a transport vehicle carrying goods of dangerous and hazardous nature would be renewable now as subject to conditions laid down by the Central Government.

5. Age Bar for Issuance and Renewal of License

Less than 30 years The license would remain in force till 40 years.
The person has attained 30 years on the date of issuance and renewal but has not attained the age of 50 years The license would remain in force for a period of 10 years.
The person has attained 55 years on the date of issuance and renewal The license would remain in force for 5 years.

5. National Register for Driving License and of Motor Vehicles (Section 25 A and Section 62B respectively): The Central Government will be responsible for maintenance of same while all State Registers of Driving Licences shall be subsumed under the National Register. No driving license issued, or renewed, under this Act shall be valid unless it has been issued a unique driving license number under the National Register of Driving Licences.

6. Application for Registration of Motor Vehicle (Section 41 (1)): In the case of a new motor vehicle, the application for registration in the State shall be made by the dealer of such motor vehicle, if the new motor vehicle is being registered in the same State in which the dealer is situated. Under the present Act, this application is made by the owner.

7. No Production of Vehicle for Registration for First Time (Section 44 (1)):  Subject to such terms and conditions as may be prescribed by the Central Government in this behalf, a motor vehicle sold by an authorized dealer shall not require production before a registering authority for the purposes of registration for the first time. Section 44 (2) of the Bill prescribes that subject to such terms and conditions as may be prescribed by the State Government, a person in whose name a certificate of registration has been issued shall not be required to produce the vehicle registered or transferred before a registering authority.

8. No breach of Warranty for alteration of the Vehicle for Retro fitment (Section 52 (1) (i)): The Central Government may prescribe specifications, conditions for approval, retro fitment and other related matters for the alteration of motor vehicles and in such cases, the warranty granted by the manufacturer shall not be considered as void for the purposes of such alteration or retro fitment.

9. Cancellation of Registration if the vehicle is used for the commission of an offense (Section 55 (5) (A)):   If any registering authority or other prescribed authority has reasons to believe that any motor vehicle within its jurisdiction has been used in the commission of an offence punishable under section 199A, the authority may, after giving the owner an opportunity of making a representation in writing, cancel the certificate of registration of the vehicle for a period of one year: Provided that the owner of the motor vehicle may apply for fresh registration in accordance with the provisions of section 40 and section 41.

10. No certificate of fitness after 1st October 2015 (Proviso to Section 56): No certificate of fitness shall be granted to a vehicle, after the 1st day of October 2019, unless such vehicle has been tested at an automated testing station. All transport vehicles with a valid certificate of fitness issued under this section shall carry, on their bodies, in a clear and visible manner such distinguishing mark as may be prescribed by the Central Government (Section 56 (6)).

11. Power to fix the age limit of the Vehicle (Section 59 (4)): The Central Government may having regard to the public safety, convenience, protection of the environment and the objects of this Act, make rules prescribing the manner of recycling of motor vehicles and parts thereof which have exceeded their life. 

12. National Insurance Policy (Section 66A): The Central Government may develop a National Transportation Policy consistent with the objects of this Act in consultation with State Governments and other agencies with a view to-

(i) establish a planning framework for passenger and goods transportation within which transport bodies are to operate;

(ii) establish a medium and long term planning framework for all forms of road transport, identify areas for the development of transport improvement infrastructure across India in consultation with the authorities and agencies related to ports, railways and aviation as well as with local and State level planning, land holding and regulatory authorities for the delivery of an integrated multimodal transport system;

(iii) establish the framework of grant of permits and schemes;

(iv) establish strategic policy for transport by road and its role as a link to other means of transport;

(v) identify strategic policies and specify priorities for the transport system that address current and future challenges;

(vi) provide medium to long term strategic directions, priorities and actions;

(vii) promote competition, innovation, an increase in capacity, seamless mobility and greater efficiency in the transport of goods or livestock or passengers, and economical use of resources;

(viii) safeguard the interest of the public and promote equity, while seeking to enhance private participation and public-private partnership in the transport sector;

(ix) demonstrate an integrated approach to transport and land use planning;

(x) identify the challenges that the National Transportation Policy seeks to address;

13. Power to make Schemes for Multimodal and Inter- State Transport (Section 88A (1)):Notwithstanding anything contained in this Act, the Central Government may, by notification in the Official Gazette, modify any permit issued under this Act or make schemes for national, multimodal and inter State transportation of goods or passengers, and issue or modify licenses under, such scheme for last mile connectivity for improving freight and logistics.

14. Right to Recall Vehicles (Section 110A): The Central Government may, by order, direct a manufacturer to recall motor vehicles of a particular type or its variants, if a defect in that particular type of motor vehicle may cause harm to the environment or to the driver or occupants of such motor vehicle or other road users; and or has been reported to the Central Government by—

(i) such percentage of owners, as the Central Government, may by notification in the Official Gazette, specify; or

(ii) a testing agency; or

(iii) any other source.

Where the defect referred lies in a motor vehicle component, the Central Government may, by order, direct a manufacturer to recall all motor vehicles which contain such component, regardless of the type or its variants of such motor vehicle. The Central Government may authorise any officer to conduct investigation under this section who shall have all the powers of a civil court, while trying a suit under the Code of Civil Procedure, 1908 in respect of the following matters, namely:—

(a) summoning and enforcing the attendance of any person and examining him on oath;(b) requiring the discovery and production of any document;

(b) requiring the discovery and production of any document;

(c) receiving evidence on affidavit, and

(d) any other matter as may be prescribed.


The article is contributed by the Team Indian Law Watch along with:

9. Intern Akriti

Intern Aakriti Ranjan Singh (Legal Researcher), University college of law (MLSU), Udaipur B.A. LL.B 4th year student;


8. Intern Raneeta Pal

Intern Raneeta Pal (Co-Author) Student of 4th year BA LLB in MLS University, Udaipur.

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