New Motor Vehicle Act: Penalties Up to Rs 3 Lakh

Seeking to come down heavily on traffic offenders, Indian government on Saturday proposed steep penalties of up to Rs 3 lakh along with a minimum 7-year imprisonment for death of a child in certain circumstances, besides huge fines for driving violations.
The new Road Safety and Transport Bill 2014 also proposes a fine of Rs 5 lakh per vehicle as well as imprisonment for faulty manufacturing design, besides cancellation of licences for rash and negligent driving.
The Bill, unveiled on Saturday by Road Transport and Highways Ministry for seeking suggestion from stakeholders, proposes penalty of up to Rs 1 lakh or imprisonment for six months which may extend to one year or both in case of using vehicle in unsafe conditions.
First offence for drunk driving will attract "Rs 25,000 fine, or imprisonment for a term not exceeding 3 months, or with both, and a six-month license suspension. Second offence within three years will result in Rs 50,000 penalty or imprisonment for up to one year or both and a one year license suspension.
"Any subsequent offence shall result in the cancellation of the licence, and impounding of the vehicle which may extend for 30 days," it said.
If school bus drivers are caught driving drunk, Rs 50,000 fine will be imposed with imprisonment for three years while "immediate cancellation" of licence will take place in case of drivers in the age-group of 18 to 25 years involved in such incidences.
Causing death of a child in certain circumstances will result in "Rs 3 lakh fine, and imprisonment for a term not less than 7 years" while violating traffic signal three times will result in Rs 15,000 fine, licence cancellation for a month and a compulsory refresher training, the draft Bill said.
It also provides for graded point system for imposing fines.
The ministry has sought comments from public and stakeholders on the Bill and will thereafter finalise it for presentation to Parliament during the ensuing winter session.
The Bill is aimed at bringing down fatalities in road accidents by two lakh in the first five years.
There will be "4 per cent GDP improvement on account of increased efficiency and safety of road transport".
The "Vision" of the Bill also states that 10 lakh jobs will be created by increased investments in the sector.
India reports around 5 lakh road accidents annually with a death toll of about 1.4 lakh.
Commenting on the Bill, Road Transport and Highways Minister of India Nitin Gadkari said, "Providing safe, efficient, cost effective and faster transport across the country is our mission."
"Our new Bill gives emphasis on E-governance to bring in transparency in the transport sector. Our new 'golden hour' policy will provide immediate relief to accident victims and will help save lakhs of lives," he said on Twitter.
The Golden Hour policy provides for treatment to road accident victims within one hour.
Gadkari had said on Friday that the government was expected to introduce the Bill in the winter session of Parliament and ensure its passage.
As per the draft Bill, there will be an independent agency - 'Motor Vehicle Regulation and Road Safety Authority of India'.
Motor vehicles are to be regulated through improved designs and simplified single-window automated driving licence systems including unified biometric systems to avoid licence duplication.
Other features include unified vehicle registration system, single National Road Transport & Multinational Coordination Authority and Goods Transport and National Freight Policy.
It encompasses provisions for safety of vehicles including implementation of safety equipment of motor vehicles.
It also includes technologies such as intelligent speed adaptation, driver alert control, eye drowsiness detectors, distance closure rate detection and green box monitoring.
The Bill has been drafted in sync with the best practises of six advanced nations - US, Canada, Singapore, Japan, Germany and the UK.
Latest News
car&bike Team | May 11, 20262026 Skoda Kodiaq Gains ADAS: Prices Start At Rs 36.99 LakhOffered in three variants, prices for the 2026 Kodiaq top out at Rs 46.99 lakh (ex-showroom).2 mins read
car&bike Team | May 11, 2026Toyota To Build New Car Plant In Maharashtra With Capacity Of 1 Lakh Vehicles A YearThis will be the third Toyota plant in India and first time that the Japanese carmaker will manufacture products outside Karnataka.1 min read
Jaiveer Mehra | May 10, 2026Final Tesla Model S, Model X Roll Out Of Fremont FactoryTesla is officially closing the book on its flagship Model S sedan and Model X SUV after over a decade of sales.1 min read
Jaiveer Mehra | May 10, 20261065 bhp Lamborghini Fenomeno Roadster Debuts As Brand’s Most Powerful Open-Top SupercarThe open-top sibling to the 2025 Fenomeno Coupe will be limited to just 15 units.2 mins read
car&bike Team | May 9, 2026Honda CB1000 Hornet SP Recalled In IndiaHonda has announced a voluntary recall for the CB1000 Hornet SP over issues related to the fuel feed hose routing and engine oil consumption.2 mins read
car&bike Team | May 9, 2026Ducati Panigale V4 Lamborghini Lands In India; Costs A Cool Rs 1 CroreIndia has received just one unit of the Ducati Panigale V4 Lamborghini, which is spoken for already.2 mins read
Bilal Firfiray | May 11, 2026Audi SQ8 Review: The Performance SUV That Actually Makes SenseThe Audi SQ8 has the performance of a V8 seamlessly combined with the everyday luxury and comfort, making it one of the most complete performance SUVs on sale in India today.5 mins read
Jafar Rizvi | May 3, 2026River Indie Gen 3 Long Term Report: 1 Month, 400 km AfterAfter a month and 400 km, the River Indie impresses with its utility-first approach, smooth ride and standout design, despite a few everyday usability compromises.8 mins read
Bilal Firfiray | May 2, 2026Volkswagen Taigun Facelift Review: Still The Driver’s SUV, But Improved!The updated Volkswagen Taigun gets a new 8-speed automatic, a refreshed design, and added features. But does it still deliver the best driving experience in the C-SUV segment?5 mins read
Shams Raza Naqvi | Apr 29, 2026Toyota Innova Hycross Vs Mahindra XEV 9S: Choosing The Right Three Row Family MoverIn a battle of three-row cars the electric Mahindra XEV 9S takes on the Toyota Innova Hycross. Which one ticks more boxes?1 min read
Janak Sorap | Apr 26, 2026BMW F 450 GS First Ride Review: Almost A Proper GS With Big Bike DNANew 420cc twin, premium build, feature-loaded and Easy Ride Clutch — but does it deliver where it truly matters?8 mins read



















































































































