The government has proposed to amend the Motor Vehicle Act to allow a 30-day grace period after the expiry of a driving licence, during which it will continue to remain valid.
This is part of the Jan Vishwas (Amendment of Provisions) Bill, 2026, which was introduced by Minister of State for Commerce and Industry Jitin Prasada in the Lok Sabha on Friday (March 27, 2026).
It also proposed to amend 79 central acts administered by 23 ministries. A total of 784 provisions are being proposed to be amended, of which 717 provisions are being de-criminalised to foster ease of doing business, and 67 provisions are proposed to be amended to facilitate ease of living.
According to the spokesperson of the Commerce and Industry Ministry, 20 amendments are proposed under the Motor Vehicle Act, with an aim to provide relaxation for some compliances under the Motor Vehicle law and resolve legal ambiguities.
These include allowing vehicle registration throughout the State instead of particular jurisdiction; and permitting a driving licence to be renewed with effect from the date of its renewal and not from the date of its expiry in case applied after expiry.
It has also proposed to provide a “grace period of thirty days after the expiry of the licence, during which the licence shall continue to be effective”, the spokesperson said.
Further, the bill has sought to increase the time period for reporting cancellation of registration for vehicles from 14 days to 30 days, and the time period for intimating the insurer with respect to transfer in the certificate of insurance from 14 days to 30 days.
The bill also proposes changes in section 161 dealing with provisions relating to compensation in case of hit-and-run motor accidents. According to the bill, any contravention of the government scheme related to compensation in hit and run cases will be liable to a penalty, ranging from ₹1 lakh to ₹5 lakh.
The existing Act imprisonment may extend to two years, or with a fine which shall not be less than twenty-five thousand rupees, but may extend to five lakh rupees or with both.
In section 178 of the Act — dealing with offences related to travelling without a valid pass — the government has proposed levying a penalty for such violations against the current provision of imposing a fine.
Similarly, in the case of section 193 dealing with agents, canvassers and aggregators without proper authority, the government proposes penalties instead of fines.
While the ‘fine’ is imposed by the court of law, the penalty can be imposed by a regulatory authority.
Published – March 27, 2026 10:40 pm IST
