Does S.68(3) MV Act Restrict State Transport Authorities From Issuing Permits For Routes Other Than Govt Prescribed? Supreme Court To Consider

The Supreme Court is set to consider the issue as to whether Section 68(3)(ca) of the Motor Vehicles Act restricts issuance of permits by transport authorities of a State on routes other than those formulated by the State government.

"Issue notice on the point as to whether clause (ca) inserted by an amendment in 1994 in Section 68(3) of the Motor Vehicles Act, 1988, restricts issuance of permits by the State Transport Authority of a State or the Regional Transport Authorities in a State on any route other than those formulated by the State Government," a bench of Justices Dipankar Datta and AG Masih recently ordered.

For context, Section 68 of the Act provides that a State government shall constitute a 'State Transport Authority' and 'Regional Transport Authorities' by way of official gazette notifications to discharge prescribed functions. According to sub-section (3) thereof, the State Transport Authority and Regional Transport Authorities shall give effect to directions issued to them by the State government under Section 67 (which authorizes the government to control road transport).

In terms of Section 68(3), the powers and functions of the State Transport Authority include:

(a) co-ordination and regulation of activities and policies of the Regional Transport Authorities;

(b) performance of duties of a Regional Transport Authority where there is no such Authority and, if it thinks fit or if so required by a Regional Transport Authority, to perform those duties in respect of any route common to two or more regions;

(c) resolving disputes between Regional Transport Authorities.

In 1994, clause (ca) was inserted in Section 68(3) to provide, "Government to formulate rules for plying stage carriages".

As per Section 67, the State government can issue directions to the State and Regional Transport authorities having regard to the "desirability of preventing uneconomic competition among holders of permits". These directions may be with regard to:

(i) fixing of fares and freights for stage carriages, contract carriages and goods carriages;

(ii) prohibition or restriction, subject to conditions, of the conveying of long distance goods traffic generally, or of specified classes of goods by goods carriages;

(iii) any other matter which may appear necessary to the State Government for giving effect to any agreement entered with another government relating to the regulation of motor transport generally, and in particular to its coordination with other means of transport and the conveying of long distance goods traffic.

Case Title: DHARMENDRA SINGH YADAV VERSUS THE STATE OF MADHYA PRADESH & ORS., SLP(C) No.21417/2025

Click here to read the order