New Delhi, March 27 The government has proposed amendments to the Motor Vehicle Act to allow a 30-day grace period after the expiry of a driving license, during which it will 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.
It also proposes amendments to 79 central acts administered by 23 ministries. A total of 784 provisions are being proposed to be amended, of which 717 provisions are being decriminalized to promote 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 the aim of providing relaxation for some compliance under the Motor Vehicle law and resolving legal ambiguities.
These include allowing vehicle registration throughout the state instead of a particular jurisdiction; and permitting a driving license 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 "30-day grace period after the expiry of the license, during which the license shall continue to be effective", the spokesperson said.
Further, the bill has sought to increase the time period for reporting the cancellation of registration for vehicles from 14 days to 30 days, and the time period for informing the insurer with respect to the transfer in the insurance certificate 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 violation of the government scheme related to compensation in hit and run cases will be liable to a penalty, ranging from Rs one lakh to Rs five lakh.
The existing Act may impose imprisonment for up 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.