UNIT - V

CONSUMER PROTECTION ACT, 2019

Introduction

Consumer protection is the practice of safeguarding buyers of goods and services against unfair
practices in the market. It refers to the steps adopted for the protection of consumers from
corrupt and unscrupulous malpractices by the sellers, manufacturers, service providers, etc. and
to provide remedies in case their rights as a consumer have been violated.

In India, the protection of the rights of the consumers is administered by the Consumer
Protection Act, 2019. The Consumer Protection Act, 2019 was introduced to replace
the Consumer Protection Act, 1986. The new Act contains various provisions which incorporate
the challenges faced by modern and technology-dependent consumers. The Act also contains
various provisions for the protection and promoting the rights of the consumers.

Meaning of the word ‘consumer’

A consumer is an individual or group of individuals who purchase goods and services for their
own personal use and not for the purpose of manufacturing or resale. Section 2(7) of the
Consumer Protection Act, 2019 defines a consumer as any person who buys goods or services in
exchange for consideration and utilises such goods and services for personal use and for the
purpose of resale or commercial use. In the explanation of the definition of consumer, it has been
distinctly stated that the term ‘buys any goods’ and ‘hires or avails any services’ also includes all
online transactions conducted through electronic means or direct selling or teleshopping or multi-
level marketing.

Need for the Consumer Protection Act, 2019

The Consumer Protection Act, 2019 was enacted by the Indian legislature to deal with matters
relating to violation of consumer’s rights, unfair trade practices, misleading advertisements, and
all those circumstances which are prejudicial to the consumer’s rights. The intention of the
Parliament behind enacting the Act was to include provisions for e-consumers due to the
development of technology, buying and selling of goods and services online have considerably
increased during the last few years.

The Act seeks to provide better protection of the rights and interests of the consumers by
establishing Consumer Protection Councils to settle disputes in case any dispute arises and to
provide adequate compensation to the consumers in case their rights have been infringed. It
further provides speedy and effective disposal of consumer complaints through alternate dispute
resolution mechanisms. The Act also promotes consumer education in order to educate the
consumer about their rights, responsibilities and also redressing their grievances.
Objective of the Consumer Protection Act, 2019

 The main objective of the Act is to protect the interests of the consumers and to establish
a stable and strong mechanism for the settlement of consumer disputes. The Act aims to:
 Protect against the marketing of products that are hazardous to life and property.
 Inform about the quality, potency, quantity, standard, purity, and price of goods to
safeguard the consumers against unfair trade practices.
 Establish Consumer Protection Councils for protecting the rights and interests of the
consumers.
 Assure, wherever possible, access to an authority of goods at competitive prices.
 Seek redressal against unfair trade practices or unscrupulous exploitation of consumers.
 Protect the consumers by appointing authorities for timely and sufficient administration
and settlement of consumers’ disputes.
 Lay down the penalties for offences committed under the Act.
 Hear and ensure that consumers’ welfare will receive due consideration at appropriate
forums in case any problem or dispute arises.
 Provide consumer education, so that the consumers are able to be aware of their rights.
 Provide speedy and effective disposal of consumer complaints through alternate dispute
resolution mechanisms.
 What are consumer rights under Consumer Protection Act, 2019
 There exist six rights of a consumer under the Consumer Protection Act, 2019. The rights
of the consumers are mentioned under Section 2(9) of the Act, which are as follows:
 The right of a consumer to be protected from the marketing of goods and services that are
hazardous and detrimental to life and property.
 The right of a consumer to be protected against unfair trade practices by being aware of
the quality, quantity, potency, purity, standard and price of goods, products or services.
 The right of a consumer to have access to a variety of goods, services and products at
competitive prices.
 The right to seek redressal at respective forums against unfair and restrictive trade
practices.
 The right to receive adequate compensation or consideration from respective consumer
forums in case they have been wronged by the seller.
 The right to receive consumer education.
 What are unfair trade practices under Consumer Protection Act, 2019
 Section 2(47) of the Consumer Protection Act, 2019 defines the term ‘unfair trade
practices’ which include:

Manufacturing spurious goods or providing defective services.
 Not issuing cash memos or bills for the goods purchased or services rendered.
 Refusing to take back or withdraw the goods or services and not refunding the
consideration taken for the purchase of the goods or services.
  Disclosing the personal information of the consumer.

Changes incorporated in Consumer Protection Act, 2019

The changes that were incorporated with the enactment of the Consumer Protection Act, 2019
are:

1. The District Commissions will have the jurisdiction to entertain complaints where the
value of the goods, services or products paid as consideration to the seller does not
exceed 50 lakh rupees.
2. State Commissions will have the jurisdiction to entertain complaints where the value of
the goods, services or products paid as consideration to the seller exceeds 50 lakh rupees
but does not exceed two crore rupees.
3. The National Commission will have the jurisdiction to entertain complaints where the
value of the goods, services or products paid as consideration to the seller exceeds two
crore rupees.
4. The Act further states that every complaint concerning consumer dispute shall be
disposed of as expeditiously as possible. A complaint filed under this Act shall be
decided within the period of three months from the date of receipt of notice by the
opposite party in the cases the complaint does not require analysis or testing of the goods
and services and within a period of 5 months, if it requires analysis or testing of the goods
and services.
5. The Consumer Protection Act, 2019 also facilitates the consumers to file complaints
online. In this regard, the Central Government has set up the E-Daakhil Portal, which
provides a convenient, speedy and inexpensive facility to the consumers all over India so
that they are able to approach the relevant consumer forums in case of any dispute arises.
6. The Act lays down the scope for e-commerce and direct selling.
7. The Consumer Protection Act, 2019 lays down provisions for mediation and alternative
dispute resolution so that the parties are able to dispose of the case conveniently without
going through the trouble of litigation.
8. The Consumer Protection Act, 2019 contains provisions for product liability, unfair
contracts and it also includes three new unfair trade practices. In contrast, the old Act just
stated six types of unfair trade practices.
9. The Act of 2019 acts as the advisory body for the promotion and protection of consumer
rights.
10. Under the Consumer Protection Act, 2019 there is no scope for selection committees, the
Act authorises the Central Government to appoint the members.
11. Therefore, with the changes in the digital era, the Indian Parliament enacted and brought
the Consumer Protection Act, 2019 in force to include the provisions for e-commerce as
digitalization has facilitated convenient payment mechanisms, variety of choices,
improved services, etc.
Essential provisions of Consumer Protection Act, 2019

The essential provisions of the Consumer Protection Act, 2019 are:

Consumer Protection Councils

The Act establishes consumer protection councils to protect the rights of the consumers at both
the national and state levels.

Central Consumer Protection Council

Under Chapter 2 Section 3 of the Consumer Protection Act, 2019 the Central Government shall
establish the Central Consumer Protection Council which is known as the Central Council. It is
an advisory body and the Central Council must consist of the following members;

The Minister-in-charge of the Department of Consumer Affairs in the Central Government will
be appointed as the chairperson of the council, and

Number of official or non-official members is representing necessary interests under the Act.

The Central Council may meet as and when necessary, however, they must hold at least one
meeting every year. The purpose of the Central Council is to protect and promote the interests of
the consumers under the Act.

State Consumer Protection Councils

Every state government shall establish a State Consumer Protection Council known as the State
Council having jurisdiction over that particular state. The State Council acts as an advisory body.
The members of the State Council are:

The Minister-in-charge of the Consumer Affairs in the State Government will be appointed as
the chairperson of the council,

Any number of official or non-official members representing necessary interests under the Act,
and

The Central Government may also appoint not less than ten members for the purposes of this
Act.

The State Councils must hold at least two meetings every year.

District Consumer Protection Council

Under Section 8 of the Act, the state government shall establish a District Consumer Protection
Council for every district known as the District Council. The members of the District Council
are:
The collector of that district will be appointed as the Chairperson of the District Council, and

Any other members are representing necessary interests under the Act.

Central Consumer Protection Authority

The Central Government shall establish a Central Consumer Protection Authority which is
known as the Central Authority under Section 10 of the Consumer Protection Act, 2019, to
regulate matters relating to violation of the rights of consumers, unfair trade practices and false
or misleading advertisements which are prejudicial to the interests of the public and consumers
and to promote, protect and enforce the rights of consumers. The Central Government will
appoint the Chief Commissioner and the other Commissioners of the Central Authority as
required under the Act.

The Central Authority must have an ‘Investigative Wing’ under Section 15 of the Act to conduct
an inquiry or investigation. The investigative wing must comprise of the Director-General and
the required number of Additional Director-General, Director, Joint Director, Deputy Director
and Assistant Director possessing the required experience and qualifications to carry out the
functions under this Act.

Functions and duties of the Central Authority

The functions and responsibilities of the Central Authority are laid down in Section 18 of the Act
which includes;

 To protect and promote the rights of the consumers as a class and to prevent violation of
consumer rights,
 To prevent unfair trade practices,
 To ensure no false or misleading advertisements regarding any goods or services are
promoted,
 To ensure no person takes part in false or misleading advertisements,
 Inquire or investigate in cases of violation of consumer rights or unfair trade practices.
 File complaints before the National, State or District Commission as the case may be,
 To review matters relating to the factors hindering the enjoyment of consumer rights.
 To recommend the adoption of international covenants and best international practices
concerning consumer rights
 Promote research and awareness of consumer rights.
 Lay down necessary guidelines to prevent unfair trade practices and protect the interests
of the consumers.

Furthermore, the Central Authority also has the power to investigate after receiving any
complaint or directions from the Central Government or of its own motion in cases where there
is an infringement of consumer rights or unfair trade practices are carried out. And if the Central
Authority is satisfied that infringement of consumer rights or unfair trade practices has occurred
then it may:

 Recall the goods or services which are hazardous and detrimental to the consumers,
 Reimburse the prices of the goods and services to the consumers, and
 Discontinue the practices that are prejudicial and harmful to the consumers.

Under Section 21 of the Act, the Central Authority is authorised to issue directions to false and
misleading advertisements which may extend to ten lakh rupees. While determining the penalty
of the offence the Central Authority must keep in mind factors such as; the population affected
by the offence, frequency of the offence and gross revenue from the sales of such product. The
Central Authority can also direct search and seizure for the purposes of this Act and in that case
the provisions of the Criminal Procedure Code, 1973 will apply.

Consumer disputes redressal commission

The state government shall establish a District Consumer Disputes Redressal Commission,
known as the District Commission in each district of the state under the Consumer Protection
Act, 2019. The District Commission shall comprise of a President and not less than two members
prescribed by the Central Government.

Section 34 of the Act authorises the District Commission to entertain complaints where the value
of the goods or services paid as consideration does not exceed one crore rupees. The complaint
relating to goods and services can be filed to the District Commission by the consumer,
recognized consumer association, Central Government, Central Authority, State Government,
etc.

Section 36 states that all the proceedings before the District Commission shall be conducted by
the President and at least one member of the commission.

Mediation

Chapter 5 Section 74 of the Consumer Protection Act, 2019 states that a Consumer Mediation
Cell shall be established by the Central Government at the national level and every state
government shall establish Consumer Mediation Cell exercising within the jurisdiction of that
state. The mediator nominated to carry out the mediation shall conduct it within such time and in
such manner as may be specified by regulations.

Section 75 of the Act says that about the empanelment of the mediators. It states the
qualifications, terms and conditions of service, the procedure for appointing, and the fee payable
to the empanelled mediators.

It is the duty of the mediator to disclose certain facts such as; any personal, financial or
professional in the result of the consumer dispute, the circumstances giving rise to their
independence or impartiality and any other necessary information for the protection of consumer
rights.

Product liability

Under Section 83 of the Act, a product liability action may be brought by a complainant against a
product manufacturer, product service provider or product seller.

Liability of product manufacturer

A product manufacturer will be held liable in a product liability action under the following
circumstances:

 The product contains manufacturing defects.

 The product is defective.
 There is a deviation from manufacturing specifications.
 The product does not conform to the express warranty.
 The product fails to contain adequate information for proper usage.

Liability of product service provider

A product service provider will be held liable in a product liability action under the following
circumstances:

 The service provider will be responsible when the service provided by them is faulty or
imperfect.
 There was an act of negligence on their part.
 The service provider failed to issue adequate instructions and warnings for the services.
 The service provider failed to conform to the express warranty or terms and conditions of
the contract.

Liability of product seller

A product seller will be held liable in a product liability action under the following
circumstances:

 They altered or modified the product which resulted in being detrimental to the
consumer.
 They failed to exercise reasonable care in assembling, inspecting or maintaining such
product
 They exercised substantial control over the product which resulted in causing harm to the
consumer.

Exceptions to product liability

There are certain exceptions to product liability action mentioned in Section 87 of the Act, such
as;

 The product was altered, modified or misused by the consumer,

 A consumer cannot bring product liability action when the manufacturer has given
adequate warnings and instructions for the use of the product,
 The manufacturer would not be liable in case of a product liability action for not warning
about any danger that is commonly known to the general public.

Offences and penalties under Consumer Protection Act, 2019

The offences and penalties listed under this Act are mentioned as follows.

Punishment for false and misleading advertisements: Under Section 89 of the Act any
manufacturer or service provider who promotes false or misleading advertisements will be
punished with imprisonment for a term that may extend to two years and with fine that may
extend to ten lakh rupees.

Punishment for manufacturing, selling, distributing products containing

adulterants: Under Section 90 of the Consumer Protection Act, 2019 any person who sells,
manufactures, distributes products containing adulterants shall be penalised in case of the
following circumstances;

1. If the adulterated product does not cause any injury to the consumer then the term for
imprisonment will extend to a period of six months and fine which may extend to one
lakh rupees,
2. If the product containing adulterant causes injury not amounting to grievous hurt then the
term for imprisonment will extend to a period of one year and fine which may extend to
three lakh rupees,
3. If the product containing adulterant causes injury amounting to grievous hurt then the
term for imprisonment will extend to a period of seven years and fine which may extend
to five lakh rupees,
4. If the product results in causing death to the consumer then the term for imprisonment
will be for a period of seven years which may extend to life imprisonment and fine not
less than ten lakh rupees.
5. Punishment for manufacturing, selling, and distributing spurious products: Section
91 states that any person who sells, manufactures, or distributes spurious products shall
be punished for such acts.

How do consumers benefit from Consumer Protection Act, 2019

The Consumer Protection Act, 2019 is a significant piece of legislation brought as it is beneficial
for the consumers. The Act widens the scope of protection regarding the rights and interests of
consumers.

Unfair contracts: The Act introduced ‘unfair contract’ under Section 2(46) of the Act, which
includes contracts requiring excessive security deposits to be given by the consumer for the
performance of contractual obligations. However, the inclusion of unfair contracts in the Act
would enable the consumer to file complaints in such cases and would also keep the fraudulent
businesses in check.

Territorial jurisdiction: The Act enables the consumers to file complaints where the
complainant resides or personally works for gain thus it would benefit the consumers in seeking
redressal for their grievances when their rights have been violated.

False and misleading advertisements: The Act defines the term ‘false and misleading
advertisements’ and also lays down strict penalties for such acts or omissions.

Product liability: The term ‘product liability’ has been defined by this Act, which states that it is
the duty of the product manufacturer, service provider or seller to compensate for any harm
caused to a consumer by such defective product manufactured or service provided to the
consumer.

Mediation and alternative dispute resolution: The Act enables the consumer to opt for
mediation and alternative dispute resolution mechanisms for speedy and effective settlement of
consumer disputes.

E-filing of complaints: The Act also facilitates e-filling of the complaints and seeking video
conference hearings by the Commission. Thus, providing convenient is means for the consumers
to voice for their grievances.

Landmark case laws

Horlicks Ltd. v. Zydus Wellness Products Ltd. (2020)

In this case, both parties are manufacturers of nutritional drinks, however, Zydus advertised a
television commercial trivialising the products of Horlicks Ltd. The commercial was being
telecasted in various languages including English, Tamil and Bengali. Therefore, the Delhi High
Court relied on various judgments on misleading advertisements, disparagement and law
governing the publication of advertisements on television and held that the advertisement is
disparaging as it does not provide any concrete proof regarding the quality of the product.
Further, electronic media leaves an impression on the minds of the viewers thus, these types of
advertisements would not only be detrimental to the consumers but also the complainant would
suffer irreparable damage.
A famous judgment relied on by Delhi High Court while deciding this case is Pepsi Co. Inc. v.
Hindustan Coca Cola Ltd., 2003 where the Delhi High Court held that there are certain important
factors that are to be kept in mind in case of disparagement which are; manner of the
commercial, intent of the commercial and storyline of the commercial.

Veena Khanna v. Ansal Properties & Industries Ltd, NCDRC (2007)

In this case, the complainant offered to purchase a flat from the respondent which the respondent
agreed to deliver on 1.6.1999 through a letter. However, the flat was not constructed within the
specified date and hence it was not delivered. For such deficiency in services, the complainant
demanded the refund of the deposited amount with interest at the rate of 18% pa which was
refused by the opposite party.

The National Commission observed that due to delays in construction and delivery of possession
it is quite difficult for a consumer to purchase a flat at market price. The National Commission
stated that it is the duty of the State Commission to direct the builders to deliver the possession
of the flat as soon as it is completed and the complainant should be awarded suitable
compensation for the delay in construction. The complainant just claimed the refund amount
before the State Commission, but the case was pending before the commission for five years and
during that time there was a tremendous rise in the market prices of the immovable property. The
National Commission further stated that it was the duty of the State Commission to direct the
respondents to deliver the possession of the flat or any other flat of equivalent size to the
complainant with appropriate compensation, due to the delay in delivering the possession within
the specified time. Or, adequate compensation ought to have been provided to the complainant so
that they could purchase a new flat of the same size at the prevailing market rate in that same
locality.

Sapient Corporation Employees v. Hdfc Bank Ltd. & Ors. (2012)

In this case, a consumer complaint was filed by Sapient Corporation Employees Provident Fund
Trust against HDFC bank Ltd. The complainant claimed that OP-Bank has committed deficiency
of services by debiting the account of the Complainant. The court in this case held that there was
no deficiency of service on the part of OP-bank and the arguments contented by the complainant
are baseless. A behaviour that conforms to the direction of regulatory authority cannot be said to
be negligence or service deficiency.

The Consumer Protection Act, 2019 is a modified piece of legislation that offers the consumers a
great variety of benefits and rights to protect them from unfair trade practices, false or
misleading advertisements, etc. The Act enables the consumers to seek alternative dispute
resolution mechanisms and mediation so that the parties can opt for speedy and effective
settlement of consumer disputes. The scope of e-filing of complaints and e-consumers in the Act
portrays forward-thinking in part of the legislature. Furthermore, the Act also introduced new
terms such as product liability, unfair contracts, etc. thereby widening the scope of protection of
consumer rights and enabling the consumers to file complaints when their rights have been
violated under the Act.

Thus, the inclusion of the provisions in this fills up the lacunae in the Consumer Protection Act,
1986. The enactment of the Act was paramount and it changed the ambit of protecting the rights
of consumers in the country.

Who Is Consumer?

Buys any item, employs any service, uses a product with the buyer’s consent. A consumer is
someone like the individual described above. It should be emphasised that neither the size of the
item nor the price at which it was purchased are important. Therefore, a consumer case may be
brought over the purchase of both a pen and a penthouse, as well as any offline or online
transactions made using electronic devices, direct marketing, multi-level marketing, or
teleshopping.

Not a Consumer?

The individual who receives the goods or services without payment. Purchase items or services
with the intent to resell those (Means of Commercial purpose). However, a person who
purchases and uses goods solely to support himself through self-employment is referred to as a
CONSUMER. A person is considered a “consumer” under the new Act if they “purchase any
goods” and “hire or avail of any service” in exchange for money, but they are not considered
consumers if they acquire things for resale or any other business purpose.

The Act seeks to widen the scope of this definition, Thus, a consumer will now mean any person
who “buys any goods” and “hires any services” which shall include both online and offline
transactions through electronic mode.. Teleshopping, direct selling, or multi-level marketing.

Salient features of the Consumer Protection Act

● Coverage of items: This act is applicable to all products and services.

● Coverage of sector: This act is applicable to all areas whether private, public, or cooperative

● Compensatory nature of provisions as it compensates the consumer for the losses.

● Group of consumer’s rights.

Objectives of new statute

Ease the overall process of the consumer grievance redressal system.

A better mechanism to dispose of consumer complaints in a speedy manner.
Help in the disposal of a large number of pending cases in consumer courts across the nation.

Effective safeguards
● It is applicable to all types of goods and services unless specifically exempted by the Central
Government.

● The ambit of the Act covers all the sectors like public, private or cooperative societies, etc.

● It is compensatory in nature.

● A three-tier system of redressal forums has been created like District Forum, State
Commission, and the National Commission

● E-Filing of Complaints

To shape Consumers- Indian customers are not well-organised, and vendors exploit them easily.

Impart Market Information- Most of the consumer is clueless, and have no information about the
product they are buying and this might cause them losses.

Physical Safety- Some products are adulterated and can hamper consumer health. So, they need
to be protected.

Avert Monopoly- Irrespective of different restriction many organization follows monopoly

practice and consumers gets influenced and should be protected.

Malpractices- Company pursues biased trade practices, and unlawful trade practices and this
protection plays a crucial role.

Misleading advertisement- Many enterprises, intentionally trick consumers through incorrect or

deceptive advertisements. This act will shield consumers from getting exploited.

Education Consumers about their Basic Rights- Most consumers ignore or do not know about
their rights. The Consumer Protect Act educates them and secures their rights and interests.

How to file a complaint

Within two years of purchasing the product or services, the complaint should be filed.

In the complaint, the consumer should mention the details of the problem. This can be an
exchange or replacement of the product, compensation for mental or physical torture. However,
the declaration needs to be reasonable.

All the relevant receipts, bills should be kept and attached to the complaint letter.

A written complaint should be then sent to the consumer forum via email, registered post, fax, or
hand-delivered. Acknowledgement is important and should not be forgotten to receive.

The complaint can be in any preferred language.

  The hiring of a lawyer is not required.
 All the documents sent and received should be kept.

Unfair Trade Practices

The New Act contains a clear, inclusive definition of unfair trade practices that, unless otherwise
permitted by other laws, also covers sharing of personally identifiable information provided by
customers in trust. Introducing mediation as a means of resolving consumer complaints. The
New Act makes mediation available as an ADR option, streamlining and expediting the dispute
resolution process. This will facilitate quicker dispute resolution and ease the burden on
consumer commissioners. Liability for Products Chapter VI of the New Act, which addresses
product liability, is now available. These stringent liability-based clauses will make it possible
for the complainant to seek compensation for damages brought on by subpar goods or services.

Importance of Consumer Protection:

Consumer Point of View:

To shape Consumers- Indian customers are not well-organised, and vendors exploit them easily.

Impart Market Information- Most of the consumer is clueless, and have no information about the
product they are buying and this might cause them losses.

Physical Safety- Some products are adulterated and can hamper consumer health. So, they need
to be protected.

Avert Monopoly- Irrespective of different restriction many organization follows monopoly

practice and consumers gets influenced and should be protected.

Malpractices- Company pursues biased trade practices, and unlawful trade practices and this
protection plays a crucial role.

Misleading advertisement- Many enterprises, intentionally trick consumers through incorrect or

deceptive advertisements. This act will shield consumers from getting exploited.

Education Consumers about their Basic Rights- Most consumers ignore or do not know about
their rights. The Consumer Protect Act educates them and secures their rights and interests.

CONSUMER RIGHTS OR CONSUMER ADVOCACY

1) Consumer rights are an insight into what rights consumer holds when it comes to the
seller who provides the goods:
Right to Safety:It refers to the right to protection from the marketing of products and
services that pose a risk to property or human life. Customers should demand before
making a purchase on the products’ quality as well as its guarantee..
 2)
Right to be Informed: It refers to the right to information regarding the calibre, amount,
potency, purity, standard, and cost of products in order to safeguard the customer against
deceptive business practises..
3) Right to Choose: It refers to the right to be, wherever possible, ensured of access to a
variety of goods and services at a reasonable cost. In a competitive market when a range
of items are offered at competitive prices, this right can be better exercised.
4) Right to be Heard: It means that consumers’ interests will receive due consideration at
appropriate forums. It also includes the right to be represented in various forums formed
to consider the consumer’s welfare.
5)
Right to Seek Redressal: It means the right to seek redressal against unfair trade practices
or unscrupulous exploitation of consumers. It also includes the right to fair settlement of
the genuine grievances of the consumer.
6) Right to Consumer Education: It means the right to acquire the knowledge and skill to be
an informed consumer throughout life. Ignorance of consumers, particularly of rural
consumers, is mainly responsible for their exploitation.

Responsibilities of a consumer

Customer protection should be actively pursued by a responsible consumer. Consumer

International, a global federation of consumer groups, has listed the following consumer
obligations:

Critical awareness

Should be vigilant and inquisitive about the products and services used.

Not to be swayed by deceptive and misleading commercials that make exaggerated claims about
items and services, but to critically assess the utility of the product or service, as well as the
assurances and warranties that come with it.

Examining items and making a service offer.

Wherever such a choice is available, exercising choice based on an assessment of relative merits
of products and services.

Adopting a no-compromise approach when it comes to the quality of goods and services to
ensure that the money spent is well spent.

Being prepared to act

One must be prepared to take action to enforce fair and just demands if they are to be enforced in
order to raise one’s voice in protest against any form of consumer exploitation by trade and
industry or any violation of their right to fair and just demands regarding the calibre of goods and
services.

Social responsibility

should be aware of how their consumption affects others, especially underprivileged groups,
locally, nationally, and globally.

Environmental awareness

To be aware of environmental degradation and contamination in order to avoid waste and

maintain natural resource conservation.

Solidarity

Being ready to band together and work together to advance consumer movement and consumer
protection measures through internet collaboration, campaigning, and advocacy programmes on
a range of consumer concerns.

Responsibility to be aware

Before purchasing goods and services, consumers have a duty to research their safety and
quality. Every consumer has a duty to obtain and hold onto the proof of purchase and other
paperwork associated with the purchase of durable goods. For instance, obtaining a cash memo
for a purchase of goods is important since the proof of purchase will help you to support your
demand for the products’ repair or replacement if you need to file a complaint about product
flaws. The warranty/guaranteed cards that retailers provide for long-lasting consumer goods like
televisions and refrigerators should also be carefully stored for future use. The cards also give
you access to free servicing for repairs and part replacements for a predetermined time after
purchase.

Responsibility to think independently

Consumers should be concerned with what they want and need and should be able to make
decisions on their own as a result. For knowledge and decision-making, it is typically ideal for a
customer to rely as little as possible on the vendor. As a consumer, it is your duty to prevent
yourself against being duped by exercising caution. A knowledgeable customer is always better
able to protect their own interests than anyone else. Furthermore, it is always better to be
prepared than it is to wait until something bad has happened before seeking therapy.

Responsibility to speak up

It’s important for buyers to be open about their issues and make clear what they want from
sellers. One of your core legal rights is to speak up and defend yourself if you think a business,
group, or seller has wronged you. This is ethical decision-making meant to safeguard other
clients from the misbehavior of the same business. If you feel that you have been treated
unfairly, you can usually contact a complaint department at a company.

Responsibility to complain

It is the duty of the customer to express and file a serious and reasonable complaint about their
dissatisfaction with products or services. Consumers are also reminded to keep in mind that they
shouldn’t make claims that are unreasonably huge when they file complaints and ask for
reimbursement for loss or harm. Consumers are regularly compelled to exercise their legal right
to legal recourse. Consumers have occasionally asked for big quantities of money for no
apparent reason. This is regarded as being careless behaviour that ought to be avoided.

Responsibility to be an ethical consumer

Consumers should act honestly and refrain from using any deceptive tactics. Some customers
misuse the product, especially when it is still under warranty, because they think they will be
able to get it fixed at that time. They are not treated fairly in this predicament. They should
constantly use the products properly.

In addition to the duties mentioned above, customers also have a few more obligations. They are
required to abide by the conditions of the contracts made with producers, traders, and service
providers. They should pay on promptly for items made with credit. They must not tamper with
equipment used for services, such as water and electricity meters, bus and train seats, etc. They
should remember that only if they are prepared to take responsibility can they exercise their
rights.

MOTOR VEHICLES ACT, 1988

Introduction

The Indian parliament approved the Motor Vehicle Act in 1988, which governs practically all
elements of road transport vehicles. It covers all areas covered by the Act’s provisions, such as
traffic laws, vehicle insurance, motor vehicle registration, controlling permits, and penalties. The
Act came into effect on July 1, 1989. The government of India, in discussion with state transport
ministers, came up with this Motor Vehicle (Amendment) Bill to make amendments to the Motor
Vehicle Act, 1988, in order to ensure that roads are safe. On April 10, 2017, the Lok Sabha
passed the Motor Vehicles (Amendment) Bill, 2017.

This Act requires all drivers to have a valid driving licence, and no vehicle may be driven unless
it is registered under the Motor Vehicle Act. The purpose of the Act’s preamble is to consolidate
and modernise motor vehicle legislation. This Act provides all drivers and conductors to obtain a
licence. The registration certificate is valid for fifteen years from the date of registration and can
be renewed for another five years.

This article gives an overview of the Motor Vehicle Act, 1988, its amendments, Supreme Court
case laws, New Amendment Act and Rules, and essential parts of the Act with Motor Vehicle
Act penalties. Let us go through each aspect in detail below:

An overview of the Motor Vehicle Act, 1988

The Motor Vehicle Act is a law relating to torts that is founded on the concept that every injury
has a remedy. At this point, the idea of compensating and giving damages comes into action. The
Motor Vehicle Act of 1988 has been regarded as a welfare law aiming at offering relief to those
who have been harmed. There existed the Motor Vehicle Act of 1939, which combined all motor
vehicle legislations, but it had to be regularly amended in order to be updated. With
advancements in road transport technology and road network growth, as well as changes in
passenger transport patterns, it was necessary that the Act was revised to cover all new methods
relevant to motor vehicles.

This Motor Vehicle Act is mainly concerned with granting relief to innocent people on the road
who are frequent victims of accidents and then find themselves without a claim to the
compensation that they should normally receive. All vehicle drivers must have a driving licence
under this Act. This also requires the registration of a vehicle under the Act, which has a 15-year
validity duration and can be renewed for another 5-year period. The Motor Vehicle Act of 1988
includes not just licencing and registration, but also other aspects of road transport vehicles.

Motor insurance is required to have at least third-party insurance in order to register and drive a
car on Indian roads. However, the New Motor Vehicle Act Of 2019 proposes a Rs.2000/- fine, 3
months in jail, and community service for driving without insurance, as well as Rs.4,000/-
punishment for repeated offences. Car and bike insurance policies are offered on the Bajaj
markets portal and online platforms such as PhonePe, Acko, and others, and they provide
customizable policy formats, coverage limits, and outstanding customer care.

The Indian Motor Vehicle Act of 1988 was established to solve the following issues:

Sticking to strict procedures for granting licences and calculating the validity period of such
licences.

 To maintain road safety requirements, dangerous and explosive material transportation

rules, and pollution control measures.
 To maintain the country’s rapidly growing quantity of personal and commercial cars.
 To raise the amount of compensation available to hit-and-run cases.
 To eliminate the time limit for traffic accident victims to file a compensation claim.

Offences covered under the Motor Vehicle Act

The following are the offences covered under the original Motor Vehicle Act that includes:

1) Driving without a licence,

2) Allowing someone without a licence to operate a vehicle owned by the vehicle owner,
3) Failing to possess all of the relevant documentation required to operate a motor vehicle
on Indian roads,
4) Driving without a permit if required,
5) Driving without a vehicle fitness report, driving without a registration certificate or R.C,
6) Operation of a vehicle by a minor,
7) Allowing an unauthorised individual to operate a vehicle,
8) Riding certain motor vehicles without a helmet,
9) Driving without fastening the driver’s seat belt,
10) Exceeding the speed limit and rash driving,
11) Risky driving,
12) Driving against the flow of traffic in a one-way lane, and other violations are considered
offences under the Act.

Important Sections of the Motor Vehicle Act

The following are some of the most important provisions of the Motor Vehicle Act:

Section 3 of the Motor Vehicle Act

Section 3 of the Motor Vehicle Act deals with the necessity of driving licence, stating that-

A person cannot drive a vehicle in public unless they have a valid and authorised driver’s
licence. Furthermore, they are not permitted to operate any transport vehicle other than a motor-
taxi or a motor bicycle for personal use or to rent the same under any scheme unless their driving
licence allows them to.

The above-mentioned circumstances shall not apply to an individual when operating a motor
vehicle in India unless prescribed by the central government

Section 4 of the Motor Vehicle Act

Section 4 of the Motor Vehicle Act deals with age limitations, stating that-

No one under the age of 18 is permitted to operate a motor vehicle in public. However, driving a
motor vehicle with an engine capacity of less than 50cc is permitted when the individual reaches
the age of 16.

No one under the age of 20 is allowed to drive a public transportation vehicle.

No one will be awarded a learner’s or permanent driving licence to operate a motor vehicle of
the class for which they have applied unless they are qualified to drive.
Section 39 of the Motor Vehicle Act

Section 39 of the Motor Vehicle Act deals with the necessity for registration, which stated that-

No person is permitted to drive a motor vehicle in a public place, and no owner of a motor
vehicle shall cause or let the vehicle to be driven in a public place by another person unless it is
registered and the vehicle’s certificate of registration has not been suspended or cancelled.

Section 66 of the Motor Vehicle Act

Section 66 of the Motor Vehicle Act deals with the necessity for permits, which stated that-

The owner of a transport vehicle cannot operate his vehicle in any public area unless it is
authorised and covered by a valid authorization.

Transport vehicles of the central or state government, local authorities, ambulances, fire brigade,
police vehicles, hearses, and those with a registered loaded weight of not more than 3000 kg are
exempted from the permission.

Every educational institution bus requires a permit.

Section 112 of the Motor Vehicle Act

Section 112 of the Motor Vehicle Act deals with speed limitations, stating that-

 No person must drive or allow a motor vehicle to be driven in any public place at a speed
exceeding the maximum speed or dropping below the minimum speed specified for the
vehicle under the Act.
 No one is permitted to drive at high speeds and should not exceed the maximum set speed
for any motor vehicle.
 If the state government or other authorities believe that it is important to restrict the speed
of motor vehicles for public safety or convenience due to the nature of the road, bridge,
or other suitable location, they may do so. This restriction is only in effect for one month
and no longer.

Section 113 of the Motor Vehicle Act

Section 113 of the Motor Vehicle Act deals with weight limits and limitations on use, stating
that-

 The conditions for the issuance of permits by the State or Regional Transport Authorities
may be prescribed by the state government. Overloaded vehicles must be prohibited or
restricted in any region or route.
 It is prohibited to drive a vehicle without pneumatic tyres fitted.
 No one is permitted to operate any motor vehicle or trailer in any public place with
  An unladen weight (i.e., not carrying a load) that exceeds the weight specified on the
certificate of registration, or
 A laden weight (i.e., carries load) that exceeds the gross weight specified on the
certificate of registration.

When a driver or any person other than the owner of a motor vehicle drives an excess weight, the
court will assume that the offence was done with the knowledge or commands of the owner of
the vehicle driven.

Section 129 of the Motor Vehicle Act

Section 129 of the Motor Vehicle Act deals with the necessity of wearing head protection, stating
that-

While driving a motor vehicle in a public location, every driver is required to wear a helmet.
Headgear is just a helmet that protects a person from causing injuries in an accident. It is
securely fastened to the wearer’s head using straps or other fastenings supplied on the helmet.

Section 130 of the Motor Vehicle Act

 Section 130 of the Motor Vehicle Act deals with the requirement to provide a driver’s
licence and a registration certificate, stating that-
 A police officer in uniform may ask a driver of a motor vehicle in any public location to
view his or her driving licence.
 A police officer in uniform or a motor vehicle department officer may ask a conductor of
a motor vehicle in any public location to view his or her driving licence.
 The registering authority or any other official of the motor vehicle department legally
authorised on this purpose should request insurance for the vehicle and the certificate of
fitness referred to as per Section 56 by the owner or person in charge of the vehicle.
 If the driver of the vehicle has no certifications of all this possession are available within
fifteen days of the demand, he/she shall produce photocopies, duly attested in person or
by registered post to the officer who made the demand.

Section 140 of the Motor Vehicle Act

Section 140 of the Motor Vehicle Act deals with the obligation to provide compensation in
specific circumstances based on the no-fault principle, stating that-

 The Act compensates the aggrieved person in the event that the vehicle defendant,
himself, or the driver of any such vehicle causes death or permanent disability to the
aggrieved party. When a death or permanent disability occurs as a result of a motor
vehicle accident, no-fault liability is invoked.
 The amount of compensation due for a claim under this Section is as follows:
  If the accident results in the death of a person, a fixed payment of Rs.50,000/- is payable,
and
 If the accident results in the permanent disability of any person, a fixed sum of
Rs.25,000/- is payable.
 The Act makes it clear that, regardless of whether the claimant or his heir or
representative committed wrongful conduct, carelessness, or default, the compensation
under this Section is not subject to any burden of proof on the claimant’s shoulders. This
Section’s compensation is controlled by no-fault liability.
 If the victim is unaffected but an accident occurs, the vehicle’s owner is responsible for
compensating the victim and he is also responsible for any other Act that is enforceable at
the time of the incident.

The amount can be reduced from the compensation amount under Section 163A of the Act.

Section 163A of the Motor Vehicle Act

Section 163A of the Motor Vehicle Act deals with special provisions for compensation payments
based on a structured formula, stating that-

 The owner of the authorised insurer’s motor vehicle is responsible for compensating the
legal heirs or the victim in the event of death or permanent disability caused by an
accident resulting from operating the motor vehicle.
 The claimant does not have to prove or plead that the death or permanent disability for
which the claim is being filed was caused by any unlawful conduct, negligence, or failure
of the vehicle owner or vehicles in question or any other person.

Section 166 of the Motor Vehicle Act

Section 166 of the Motor Vehicle Act deals with the application for compensation, stating that-

 The claimant might file a claim with the Motor Accident Claim Tribunal for
compensation.
 An application for compensation arising from an accident can be made by:
 Anyone who has been injured, or
 The owner of the property damaged/involved in the accident,
 A legal representative of the person who died in a road accident, or
 An authorised agent of the injured party or
 Legal representatives of the person who died in the accident.
 The application must be filed on behalf of or for the benefit of all of the deceased’s legal
representatives.

Section 177 of the Motor Vehicle Act

Section 177 of the Motor Vehicle Act deals with the punishment of offences, stating that-
Anyone who violates the Act’s rules, regulations, or notifications is subject to a penalty of
Rs.100/- if the violation is committed for the first time. If the violation is for the second or
subsequent time, she/he has to pay Rs.300/- as a penalty.

Section 179 of the Motor Vehicle Act

Section 179 of the Motor Vehicle Act deals with disobedience of orders, obstruction and refusal
of information, stating that-

If no other penalty is provided for the offence,

 Any person who willfully disobeys any laws directed by any person or authority under
this Act or
 Any person who obstructs or discharges any functions or is empowered to discharge any
laws directed by a person or authority under this Act shall be punished with a fine that
may extend to five hundred rupees.

If no other penalty is provided for the offence,

 Any person who is required or under this Act to supply any information wilfully
withholds such information, or
 Any person who gives information that he knows to be false or does not believe to be true
shall be punished with imprisonment up to one month or a fine of Rs.500, or both.

Section 181 of the Motor Vehicle Act

Section 181 of the Motor Vehicle Act deals with driving a vehicle under the requirement for a
driving licence and the age restriction related to driving a motor vehicle, stating that-

 Any person who drives a motor vehicle without a licence prescribed under Section 3 of
the act, or
 Any person who drives a motor vehicle while under the age restriction prescribed under
Section 4 of the Act.

The above-mentioned conditions are punishable by imprisonment for a maximum of three

months or a fine of Rs.1,000/-, or both.

Section 184 of the Motor Vehicle Act

Section 184 of the Motor Vehicle Act deals with driving dangerously, stating that-

 Any person who drives a motor vehicle at a dangerous speed or in a dangerous manner to
the public, taking into account all circumstances of the case, including the nature,
condition, and use of the place where the vehicle is driven and the amount of traffic that
actually exists at the time,
  If the above-mentioned offence happens, then the person shall be punished for the first
offence with imprisonment for six months or a fine of one thousand rupees, and for the
second or subsequent offence if committed within three years of the previous offence
with the imprisonment of 2 years or fine of 2000 rupees or both.

Section 185 of the Motor Vehicle Act

Section 185 of the Motor Vehicle Act deals with drunk and driving or a person who is under
influence of drugs, stating that-

 Any person who is driving or attempting to drive a motor vehicle-

 Any person who has consumed alcohol in excess of 30 milligrams per 100 millilitres of
blood as determined by a breath analyzer test, or
 Any person who is under the influence of a substance to the point of being unable to
exercise adequate control over the vehicle.

For the first offence, a person who is inebriated or under the influence of narcotics is penalised
by imprisonment for a term of up to 6 months or a fine of up to 2000 rupees or both.

If the offence is committed for the second or subsequent time, the individual is sentenced to two
years in jail or a fine of 3000 rupees, or both, if the offence is committed within three years of
the prior identical offence.

Motor Vehicle Act: amendments

The Motor Vehicle Act has undergone various amendments. They are as follows:

Motor Vehicle Amendment Bill, 2019

In July 2019, the Indian parliament enacted the Motor Vehicle Amendment Bill. The amended
Motor Vehicle Act, which went into effect in September of that year, included increases in a
number of fines for traffic violations, provisions for automobile manufacturers to recall defective
parts, and making vehicle owners criminally responsible for infractions committed by minor
drivers. The New Act has increased the punishments for a variety of offences in order to stop
drivers from acting badly on the road and improve overall road safety across the country.

Some important proposals in the Motor Vehicle (Amendment) Bill

The Bill makes Aadhar necessary for obtaining a driving licence and registering a vehicle.

For deaths such as hit-and-run accidents, the government would compensate the victim’s family
with Rs 2 lakh or more. Currently, the sum is only Rs.25,000.
In the case of juvenile traffic offences, the guardians or owners of the vehicle would be held
liable unless they could establish the offence was done without their consent or they attempted to
avoid it.

The minimum penalties for drunken driving has been raised from Rs.2,000 to Rs.10,000.

The Bill requires automated vehicle fitness testing.

The Bill enables the central government to legislate vehicle recalls if a problem in the vehicle
threatens the environment, the driver, or other passengers on the road.

The law establishes a National Road Safety Board, which would be appointed by the central
government by notification. The Board will advise the central and state governments on all
elements of road safety and traffic management, including motor vehicle standards, vehicle
registration and licensing, road safety requirements, and the promotion of innovative vehicle
technology.

The Bill proposes a cashless treatment scheme for traffic accident victims during the golden
hour.

The 2016 Bill removed the liability limit for third-party insurance, which was set at Rs.10 lakhs
for death and Rs.5 lakhs for grievous injury.

Motor Vehicle Amendment, 2020

The Motor Vehicle Act of 1989 has undergone several significant amendments that took effect
on October 1, 2020. According to the Amendment, drivers can store a softcopy of their driver’s
licence and other papers in their vehicle instead of carrying real paperwork. The Amendment is
for the millions of people who use the roadways on a daily basis. These changes were
implemented by the ministry of road transport and roads to ensure that traffic regulations are
followed, that digitalization is promoted, and that drivers are not harassed by police officers.

Some changes have been made to the traffic rules under the Amendment, 2020

Individuals can now save documents on their mobile devices under the New Amendment. These
will save them from carrying an unnecessary burden in the form of physical documents. If a
police officer requests a driver’s licence or other similar documents, the person can now give
their soft copy.

Since there will be no physical inspection of vehicle documents. If a traffic officer has to cancel
a driver’s licence, they can do so through the site, which will be updated on a regular basis.

The driver’s behaviour will be watched, and the police officer’s identity will be updated on the
site, according to the official announcement. The information on the site would be updated every
time a driver or vehicle was examined.
On the government’s Digi-locker or m-parivahan, driver’s licences and other papers such as
registration certificates can be kept online.

By ensuring that the driver’s focus is maintained while driving, any portable communications
devices like cell phones can be utilised for route navigation.

The Motor Vehicle Act of 1989 imposes fines for persons who break traffic laws. This will
prevent the vehicle from doing repeated checks, reducing traffic congestion on the road. Those
discovered disobeying traffic laws will receive an e-challan via the government’s digital site.

After the driver’s licence is cancelled, the offender must report to the digital portal.

Latest Supreme Court judgements on the Motor Vehicle Act

United India Insurance Co. Ltd. v. Sunil Kumar and Anr., (2017)

The Supreme Court has held that an insurer cannot file a negligence claim. It is one of the most
recent Supreme Court cases on the Motor Vehicle Act, with the main issue being the extent of
Section 163A of the 1988 Act. This Act contains special provisions for the payment of
compensation based on a structured formula. The following are the case’s facts, issues and
judgment. The following are the facts, issues, and judgment of this case.

Facts of the case

The respondent, in this case, has filed a claim petition under Section 163A of the Motor Vehicle
Act, 1988, seeking compensation for injuries he incurred in a traffic accident on November 20,
2006.

After recording the evidence and hearing the parties, the tribunal issued a judgment dated August
16, 2011, awarding an amount of Rs. 3,50,000/- plus interest at a rate of 7% per annum.

This outraged the insurance company, which filed an appeal based on the insurance firm’s failure
to comply with Section 170 of the Motor Vehicle Act, 1988. The appeal was then to be heard by
the Supreme Court.

Issues involved

In a claim procedure under Section 163A of the Motor Vehicle Act, the question arises as to
whether the insurer has the authority to present a defense/plea of negligence.

Judgment of the case

The court decided that in a case under Section 163A of the Motor Vehicles Act, 1988, the
insurance cannot offer any negligence defence on behalf of the victim, and Section 163A (2) of
the Motor Vehicles Act, 1988 makes this plan. Hence, the owner/insurance company will be held
liable for compensation.
Important points to note from this case

Compensation under Section 163A of the MV Act is in the nature of a final award, and
adjudication is made without the need for proof of negligence on the part of the driver or owner
of the vehicles involved in the accident.

Section 163A (2) expressly states that the claimant is not necessary to prove fault. However, the
abovementioned clause does not expressly rule out the possibility of an insurer’s defence based
on the claimant’s carelessness. However, allowing an insurer to use such a defence while
considering such circumstances would be contrary to the legislative intent of Section 163A of the
Act.

Mukund Dewangan v. Oriental Insurance Company Limited, (2017)

According to the Supreme Court, a driver with a light motor vehicle licence can operate a
transport vehicle without an endorsement. The following are the facts, issues and judgment of
this case.

Facts of the case

The various vehicle categories for which licences were issued in this case were light motor
vehicles, medium goods vehicles, medium passenger motor vehicles, heavy goods vehicles, and
heavy passenger motor vehicles.

To make the process of acquiring a driver’s licence easier, categories such as the one described
above were removed. The transport vehicle was added as a new category. On November 14,
1994, the Motor Vehicle Act of 1989 was amended.

Form no. 4 of the 1989 regulations, which was used to submit a licence application, continued to
list four separate categories. Form no. 4 was only changed on March 28, 2001, when it was
amended to include the word “transport vehicle” and became compliant with the 1994
Amendment to the Motor Vehicle Act 1989.

Issues involved

The question is whether a driver with a light motor vehicle licence who is also driving a transport
vehicle of the same class has to get an endorsement to drive a transport vehicle.

Judgment of the case

The Supreme Court of India held that if a driver has a light motor vehicle license and is driving a
transport vehicle of the same type, no further endorsement is necessary.

New Motor Vehicle Act, 2019 penalties

The following are the penalties under New Motor Vehicle Act, 2019:
S.n
Violation New penalty from September 2019
o

1. Driving/ Riding without licence ₹5,000 and/or community service.

Driving/Riding under the influence of ₹10,000 and/or 6 months prison| ₹15,000 and /or 2 years jail
2.
an intoxicating substance for the repetitive violation.

Light motor vehicle: ₹1,000- ₹2000MPV/HPV: ₹2,000-

3. Overspeeding
₹4,000 (+licence seizure).

4. Driving without a seat belt ₹1,000 and/or community service.

₹2,000 and/or 3-months prison, community service | ₹4,000

5. Driving/Riding without insurance
for a subsequent offence.

6. Violating road regulations ₹500- ₹1000

Dangerous driving/riding and ₹1,000- ₹5,000 and/or 6-months to 1 year in prison, licence
7.
jumping red light seizure.

Driving/Riding while on the mobile

8. ₹5,000
(handheld)

₹5,000 and/or 3-months prison, community service | ₹10,000

9. Speeding, Racing for subsequent violation and up to 1 year in prison, community
service.

Not giving way to emergency

10. vehicles like ambulances, fire ₹10,000 and/or community service.
engines, etc.

Riding without Helmet (rider and ₹1000, and or licence disqualification, community service for
11.
pillion rider) 3-months.

₹2,000 and licence disqualification and/or 3-months of

12. Overloading Two-Wheelers
community service.

₹25,000 with 3-years prison, cancellation of registration for 1-

13. Juvenile Offences
year, juvenile ineligible for licence until 25 years of age.

14. Driving/Riding espite disqualification 10,000, and/or community service.

15. Overboarding Passengers 200 for every extra passenger and/or community service.

16. Driving/Riding without ticket 500

Offence committed by enforcing

17. Twice the penalty (varies according to traffic rules violated).
authorities such as offering bribes

Unauthorized use of vehicles without

18. 1,000- 5,000
licence

Disobedience of orders of the

19. 2,000
authorities

20. Vehicles without permit 10,000 and/or up-to 6-months prison, community service.

21. Oversized Vehicles 5,000 to 10,000 and/or community service.

20,000 + 2,000 for every extra tonne and/or community

22. Overloading
service.

Driving/Riding without licence (for

23. 25,000 to 1,00,000
aggregators)

24. Driving/Riding without registration 5,000 | 10,000 for a subsequent offence.

25. Using horn in silent zone 2,000 | 4,000 for a subsequent offence.

Central Motor Vehicle Rules, 1989

The Ministry of Road, Transport, Highways, and Shipping published the Central Motor Vehicle
Rules in 1989, which govern vehicle-related activities such as driver licensing, traffic
inspections, production and maintenance of motor vehicles, as well as licensing of automotive
components and entire vehicles.

Rule 3 of Central Motor Vehicle Rules, 1989 in India,

This rule does not apply to a person who is getting lessons or gaining experience in driving while
presenting himself in a test of competence to drive if the following conditions are met:
Any person who is the holder of an effective learner’s licence granted to him in form 3 to drive
the vehicle; any person who is accompanied by an instructor holding an effective driving licence
to drive the vehicle and such teacher is seated in such a position to control or stop the vehicle;

The letter ‘L’ is painted in red on a white background on the front and rear of the vehicle, or on a
plate or card affixed.

Central Motor Vehicles (Second Amendment) Rules, 2022

On February 15, 2022, the Ministry of Road Transport and Highways released the Central Motor
Vehicles (Second Amendment) Rules, 2022 to amend the Central Motor Vehicles Rules, 1989.
This took effect on February 15, 2022.

The following changes have been made to Rule 138, which specifies “Signals and additional
safety measures for motor vehicles,” with the addition of sub-clause (7):

“After one year from the date of publication of the Central Motor Vehicles (Second Amendment)
Rules, 2022, the driver of a motorcycle should also ensure the following safety measures while
carrying a child between the ages of nine months and four years as a rider, namely:

(i) For children under the age of four years, a safety harness shall be used to attach the child to
the driver of the motorcycle.”

Motor Vehicle Act and rules

The Motor Vehicle Act regulates practically every aspect of road transport vehicles. The
legislation requires all drivers to have a valid driver’s licence, and no vehicle can be operated
unless it is registered under the MV Act. In addition, the driver must also be a major and not
under the age of 18 years.

The MV Act penalises for the following offences:

Under Section 3 read with Section 181 of the Motor Vehicle Act, a person who drives his vehicle
without a valid licence commits an offence.

A person who allows his vehicle to be driven by someone who does not have a valid driver’s
licence is violating the Motor Vehicle Act’s Section 5 read with Section 180.

A breach of Section 130(3) read with Section 177 of the Motor Vehicle Act occurs when a
person does not have all of their required documents.

Section 130 read with Section 177 of the Motor Vehicle Act makes it illegal for a person to drive
his vehicle without appropriate insurance.

Under Section 3 read with Section 181 of the Motor Vehicle Act, a person who drives his vehicle
without a valid licence commits an offence.
A person who allows his vehicle to be driven by someone who does not have a valid driver’s
licence is violating the Motor Vehicle Act’s Section 5 read with Section 180.

A breach of Section 130(3) read with Section 177 of the Motor Vehicle Act occurs when a
person does not have all of their required paperwork.

Section 130 read with Section 177 of the Motor Vehicle Act makes it illegal for a person to drive
his vehicle without appropriate insurance.

It is unlawful for a person to drive a vehicle without a valid permit as per Section 130(3) read
with Section 177 of the Motor Vehicle Act.

Driving a vehicle without a valid fitness certificate is a violation of Section 130 read with
Section 177 of the Motor Vehicle Act.

A person who does not have a valid R.C. for his vehicle is violating the Motor Vehicle
Act’s Section 39 read with Section 192.

When a juvenile operates a vehicle, it is a violation of Section 4 and Section 181 of the Motor
Vehicle Act.

Allowing an unauthorised individual to drive is a violation of the Motor Vehicle Act’s Section 5
read with Section 180.

Riding without a helmet is punishable under Section 129 read along with Section 177 of the
Motor Vehicle Act.

Driving a vehicle while not wearing a seat belt is a violation of Rule 138(3) of the Central Motor
Vehicle Rules, as well as read with Section 177 of the Motor Vehicle Act.

Overspeeding and rash driving are both punishable offences under Section 184 of the Motor
Vehicle Act.

Section 112-183 of the Motor Vehicle Act makes it unlawful to drive in a hurried or unsafe
manner.

Section 17(i)RRR 177 of the Motor Vehicle Act makes it unlawful to drive in a one-way against
the traffic flow.

The Motor Vehicle Act ensures the safety of all citizens in the country. to defend oneself from
harm and avoid traffic jams. This legislation directs the whole country of India to follow the
laws, and if they do not, fines are imposed. This MV Act protects not only vehicle owners and
drivers, but also the people who utilise the roads on a regular basis across the country. Citizens
are expected to follow the laws that have been established for their own and other people’s
benefit. This Act also assures uniformity across the country in order to prevent traffic jams and
accidents. If an unavoidable event causes an accident that leads to death, permanent disability, or
minor harm, the victim and their family are eligible to seek compensation from the offenders or
drivers of the vehicle that caused the accident. Thus, the article concludes that all people must
follow the Act’s laws and restrictions in order to make India a better place to live on it.

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