MoRTH Issues Advisory On The Definition Of 'Contract Carriage' Under The Motor Vehicles Act, 1988

MoRTH, on January 22, 2024, issued an advisory clarifying that 'motor cycles' would fall within the ambit of the definition of 'contract carriage' under Section 2 (7) of the Motor Vehicles Act, 1988 ("MV Act") and advised all States and Union Territories to process applications for granting contract carriage permits to motor cycles as per the provisions of MV Act and rules framed under the MV Act.

As per the advisory, MoRTH analysed the definition of 'contract carriage' and stated that it clearly includes 'motor vehicles' as defined under the MV Act. Section 2 (28) of the MV Act defines 'motor vehicles' includes vehicles having less than 4 (four) wheels with engine capacity more than 25 cc (twenty-five cubic centimetres) and therefore contract carriage would include all 2 (two) wheelers which have more engine capacity higher than 25 cc (twenty-five cubic centimetres).