In exercise of the powers conferred by sub-section (1) of section 75 of Motor Vehicles
Act, 1988 (59 of 1988), the Central Government hereby makes the following scheme for
regulating the business of renting of motor cabs to persons desiring to drive the cabs for
their own use and matters connected therewith, namely:€"
1. Short title, commencement and application.€"(1) This scheme may be called
Rent a Cab Scheme, 1989.
(2) It shall come into force on the first day of July, 1989.
(3) It shall apply to all motor cabs to which tourist permits have been issued
under sub-section (9) of section 88 of the Act and operating under a licence granted
in terms of para 6.
2. Definitions.€"In this section unless the context otherwise requires:
(a) €Act€ means Motor Vehicles Act, 1988 (59 of 1988);
(b) €Form€ means of Form appended to this scheme;
(c) €licence€ means a licence granted or renewed under paragraph 6 to
engage in the business of renting of motor cabs to persons desiring to
drive the cabs 2
[***] for their own use;
(d) €licensing authority€ means the State Transport Authority constituted
under sub-section (1) of section 68 of the Act;
(e) €operator€ means the holder of a permit issued under sub-section (9) of
section 88 of the Act in respect of not less than 50 motor cabs.
3. Licensing of operator.€"No person shall engage himself in the business of
renting a motor cab under this scheme without licence.
4. Application for grant or renewal of licence.€"(1) An application for the
grant or renewal of a licence under paragraph 6 shall be made in Form 1 to the
licensing authority having jurisdiction in the area in which he resides or has his
principal place of business (hereinafter referred to as main office) and shall be
accompanied by a fee of rupees five thousand.
(2) Where the applicant has, besides the main office, branch office within the
jurisdiction of the licensing authority referred to in clause (1), the application shall
indicate such place with the number of motor cabs proposed to be stationed at each
such place.
(3) Where the applicant has branch offices outside the jurisdiction of the
licensing authority, the application shall be made to the licensing authority in
whose jurisdiction the branch office is situated, in Form 2 accompanied by a fee of
rupees one thousand in respect of each such branch offices.
5. Scrutiny of application.€"A licensing authority shall, before granting or
renewing a licence take into consideration the following namely:€"
1. Vide S.O. 437 (E), dated 12th June, 1989, published in the Gazette of India, Extra., Pt. II, Sec.
3(ii), dated 12th June, 1989.
2. Omitted by S.O. 808 (E), dated 28th November, 1991 (w.e.f. 28-11-1991).(i) That applicant has a good moral character and has intimate knowledge
of passenger transport business;
(ii) That the main office or the branch office of the applicant is either owned
by the applicant or is taken on lease by him or is hired his name and it
has adequate space for reception room, administrative section, clock
room with locker facilities, sanitary blocks, 1
[adequate parking space] for
the motor cabs;
(iii) That the applicant has necessary facilities for the housing, maintenance
and repair of his vehicles;
(iv) That the applicant has at least one telephone which is accessible
throughout day and night;
(v) That the applicant has 1
[branch offices or sub-licensee offices] with
telephones, in not less than 5 cities of tourist importance with facilities
for housing, maintenance and repair of vehicles;
(vi) That the financial resources of the applicant are sufficient to provide for
the continued maintenance of motor cabs and for the efficient
management of the establishment;
(vii) That the applicant maintains not less than 50 motor cabs of which
50 per cent. are air-conditioned duly covered by permits issued under
sub-section (9) of section 88 of the Act, with comprehensive insurance,
fitness certificate, motor vehicles tax paid up to date:
Provided that in the case of licence for a branch office situated in a
place outside the jurisdiction of the licensing authority, it shall be
sufficient, if such branch office maintains not less than five motor cabs.
6. Grant of licence.€"The licensing authority may, on receipt of an application
under paragraph 4 and after satisfying himself that the applicant has complied with
the requirements of paragraph 5, grant or renew the licence in Form 3 or, as the case
may be, in Form 4:
Provided that no application for a licence shall be refused by the licensing
authority unless the applicant is given an opportunity of being heard and reasons
for such refusal are given in writing by the licensing authority.
7. Duration of licence.€"A licence granted or renewed under paragraph 6 shall
be valid for a period of five years from the date of grant or renewal:
Provided that in the case of the licence in respect of branch offices referred to
under clause (3) of paragraph 4, the validity of such licence shall be restricted to the
validity of the licence granted in respect of main office.
8. General conditions to be observed by the holder of the licence.€"The holder
of a licence shall,€"
(i) maintain a register with a separate page for such vehicle containing the
particulars specified, in Form 5 and where a motor cab is hired by a
foreign national shall maintain a register in Form 6;
(ii) not shift the principal place of business mentioned in the licence without
the prior approval in writing of the licensing authority which granted
the licence;
1. Subs. by S.O. 808 (E), dated 28th November, 1991 (w.e.f. 28-11-1991).(iii) keep the premises and all the records and register maintained and the
motor cabs open for inspection at all reasonable times by the licensing
authority or by any person not below the rank of motor vehicle inspector
as may be authorised in this behalf by the licensing authority;
(iv) submit from time to time, to the licensing authority such information
and return as may be called for by it;
(v) display at a prominent place in its main office and its branch offices, the
licence issued in original and certified copies thereof, attested by its
licensing authority;
(vi) maintain in their main office and branch offices at a conspicuous place
a €complaint book€ in the Form 7 with serially numbered pages in
triplicate. The licensees shall despatch the duplicate copy of complaint if
any, to the licensing authority by registered post expeditiously and in
any case not later than 3 days;
(vii) maintain a suggestion box in the main office and branch offices and
forward their suggestions received with their comments, if any, to the
licensing authority, once a month;
(viii) where he is having a foreign collaboration with the approval of the
Government, this fact should be displayed in the office premises, with
the specific approval of Department of Tourism of the Central
Government.
9. Collection of hire charges.€"The holder of a licence shall collect the hire
charges from a foreign national or a non-resident Indian only in foreign exchange
and shall hold for the purpose a licence to transact in foreign exchange.
10. Duties and responsibilities of hirers of motor cabs.€"(1) It shall be the duty
of every hirer, to keep the holder of the licence, informed of his movements from
time to time.
(2) If an individual or company has hired the vehicles as a leader of the tourist
party, it shall be the duty of such leader of the party to keep the holder of the
licence informed of the movement of each vehicle, from time to time.
1
[(3) If a hirer so desires, he may engage a person possessing a valid driving
licence to drive the vehicl
Act, 1988 (59 of 1988), the Central Government hereby makes the following scheme for
regulating the business of renting of motor cabs to persons desiring to drive the cabs for
their own use and matters connected therewith, namely:€"
1. Short title, commencement and application.€"(1) This scheme may be called
Rent a Cab Scheme, 1989.
(2) It shall come into force on the first day of July, 1989.
(3) It shall apply to all motor cabs to which tourist permits have been issued
under sub-section (9) of section 88 of the Act and operating under a licence granted
in terms of para 6.
2. Definitions.€"In this section unless the context otherwise requires:
(a) €Act€ means Motor Vehicles Act, 1988 (59 of 1988);
(b) €Form€ means of Form appended to this scheme;
(c) €licence€ means a licence granted or renewed under paragraph 6 to
engage in the business of renting of motor cabs to persons desiring to
drive the cabs 2
[***] for their own use;
(d) €licensing authority€ means the State Transport Authority constituted
under sub-section (1) of section 68 of the Act;
(e) €operator€ means the holder of a permit issued under sub-section (9) of
section 88 of the Act in respect of not less than 50 motor cabs.
3. Licensing of operator.€"No person shall engage himself in the business of
renting a motor cab under this scheme without licence.
4. Application for grant or renewal of licence.€"(1) An application for the
grant or renewal of a licence under paragraph 6 shall be made in Form 1 to the
licensing authority having jurisdiction in the area in which he resides or has his
principal place of business (hereinafter referred to as main office) and shall be
accompanied by a fee of rupees five thousand.
(2) Where the applicant has, besides the main office, branch office within the
jurisdiction of the licensing authority referred to in clause (1), the application shall
indicate such place with the number of motor cabs proposed to be stationed at each
such place.
(3) Where the applicant has branch offices outside the jurisdiction of the
licensing authority, the application shall be made to the licensing authority in
whose jurisdiction the branch office is situated, in Form 2 accompanied by a fee of
rupees one thousand in respect of each such branch offices.
5. Scrutiny of application.€"A licensing authority shall, before granting or
renewing a licence take into consideration the following namely:€"
1. Vide S.O. 437 (E), dated 12th June, 1989, published in the Gazette of India, Extra., Pt. II, Sec.
3(ii), dated 12th June, 1989.
2. Omitted by S.O. 808 (E), dated 28th November, 1991 (w.e.f. 28-11-1991).(i) That applicant has a good moral character and has intimate knowledge
of passenger transport business;
(ii) That the main office or the branch office of the applicant is either owned
by the applicant or is taken on lease by him or is hired his name and it
has adequate space for reception room, administrative section, clock
room with locker facilities, sanitary blocks, 1
[adequate parking space] for
the motor cabs;
(iii) That the applicant has necessary facilities for the housing, maintenance
and repair of his vehicles;
(iv) That the applicant has at least one telephone which is accessible
throughout day and night;
(v) That the applicant has 1
[branch offices or sub-licensee offices] with
telephones, in not less than 5 cities of tourist importance with facilities
for housing, maintenance and repair of vehicles;
(vi) That the financial resources of the applicant are sufficient to provide for
the continued maintenance of motor cabs and for the efficient
management of the establishment;
(vii) That the applicant maintains not less than 50 motor cabs of which
50 per cent. are air-conditioned duly covered by permits issued under
sub-section (9) of section 88 of the Act, with comprehensive insurance,
fitness certificate, motor vehicles tax paid up to date:
Provided that in the case of licence for a branch office situated in a
place outside the jurisdiction of the licensing authority, it shall be
sufficient, if such branch office maintains not less than five motor cabs.
6. Grant of licence.€"The licensing authority may, on receipt of an application
under paragraph 4 and after satisfying himself that the applicant has complied with
the requirements of paragraph 5, grant or renew the licence in Form 3 or, as the case
may be, in Form 4:
Provided that no application for a licence shall be refused by the licensing
authority unless the applicant is given an opportunity of being heard and reasons
for such refusal are given in writing by the licensing authority.
7. Duration of licence.€"A licence granted or renewed under paragraph 6 shall
be valid for a period of five years from the date of grant or renewal:
Provided that in the case of the licence in respect of branch offices referred to
under clause (3) of paragraph 4, the validity of such licence shall be restricted to the
validity of the licence granted in respect of main office.
8. General conditions to be observed by the holder of the licence.€"The holder
of a licence shall,€"
(i) maintain a register with a separate page for such vehicle containing the
particulars specified, in Form 5 and where a motor cab is hired by a
foreign national shall maintain a register in Form 6;
(ii) not shift the principal place of business mentioned in the licence without
the prior approval in writing of the licensing authority which granted
the licence;
1. Subs. by S.O. 808 (E), dated 28th November, 1991 (w.e.f. 28-11-1991).(iii) keep the premises and all the records and register maintained and the
motor cabs open for inspection at all reasonable times by the licensing
authority or by any person not below the rank of motor vehicle inspector
as may be authorised in this behalf by the licensing authority;
(iv) submit from time to time, to the licensing authority such information
and return as may be called for by it;
(v) display at a prominent place in its main office and its branch offices, the
licence issued in original and certified copies thereof, attested by its
licensing authority;
(vi) maintain in their main office and branch offices at a conspicuous place
a €complaint book€ in the Form 7 with serially numbered pages in
triplicate. The licensees shall despatch the duplicate copy of complaint if
any, to the licensing authority by registered post expeditiously and in
any case not later than 3 days;
(vii) maintain a suggestion box in the main office and branch offices and
forward their suggestions received with their comments, if any, to the
licensing authority, once a month;
(viii) where he is having a foreign collaboration with the approval of the
Government, this fact should be displayed in the office premises, with
the specific approval of Department of Tourism of the Central
Government.
9. Collection of hire charges.€"The holder of a licence shall collect the hire
charges from a foreign national or a non-resident Indian only in foreign exchange
and shall hold for the purpose a licence to transact in foreign exchange.
10. Duties and responsibilities of hirers of motor cabs.€"(1) It shall be the duty
of every hirer, to keep the holder of the licence, informed of his movements from
time to time.
(2) If an individual or company has hired the vehicles as a leader of the tourist
party, it shall be the duty of such leader of the party to keep the holder of the
licence informed of the movement of each vehicle, from time to time.
1
[(3) If a hirer so desires, he may engage a person possessing a valid driving
licence to drive the vehicl