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Delay in renewal of licenses by Transport Department results in losses to J&K government

Last Updated on June 16, 2021 at 11:51 am

Transport department has failed to set a proper system for ensuring renewal of licenses of motor transport service providers without any delays.

Despite so many years passed still the adequate mechanism has not been set up which resulted in non-realisation of revenue of Rs 73.86 lakh. 

As per reports, this made a loss of renewal fee of Rs 41.16 lakh and Late fee of Rs 32.70 lakh. 


As per reports, 109 licence holders did not renew their license out of 180 Motor Transport services licences which were issued by the Transport Commissioner. The range of delay for renewal of licenses include between 1 to 20 years. This resulted in non-recovery of revenue of Rs 73.86 lakh.

Also, licences of 26 Pollution Checking Centres have not been renewed out of 103 Pollution Control Licences. The range of delay for renewal of licenses is between one to six years which resulted in non-realisation of revenue of Rs 1.80 lakh.

Talking about Driving Institute licences which were issued by two RTOs, 70 licence holders did not renew their license out of 169.

As per reports, no records of inspection were available with the RTOs showing that these institutes were non-functional. Therefore, the non-renewal of these licences has resulted in non-recovery of licence renewal fee of Rs 10.67 lakh.

Audit reports conducted in the past showed that the business was carried unofficially by these institutes when they did not have valid licenses.

In Jammu, for 18 cases of the licences of driving schools, the licences were renewed without charging any fee. Also the same Demand draft/ GR on multiple occasions were used which resulted in short charging of renewal fee of Rs 0.77 lakh.

According to CMV Rules, 1989 envisage that no person shall establish or maintain any Driving School or establishment for imparting instructions for hire or reward in driving motor vehicles, without a licence granted by the Licensing Authority.  The licence granted shall be in force for a period of five years and has to be renewed in not less than sixty days before the date of its expiry on payment of prescribed fee.

Also, JKMV Rules, 1991 envisages that persons/ firms having Motor Transport Service licences have to get the licences renewed after one year on submission of an application in the prescribed form to the State Transport Authority after payment of fee at the rate of Rs 5,000 per annum. 


For renewal of license, Licence holder can apply to the Registering Authority not less than 30 days before the date of expiry of his licence. If the condition is not followed, the licence holder was to be charged Rs 200 per day as a fine for late renewal. Also, any person/ persons or firm/ firms found doing transport business without any valid transport service licence have to pay a fine up to Rs 30,000 as per the SRO 190 dated 28 April 2010.