(1) The Central Government may, by notification in the Official Gazette, make a scheme for the purpose of regulating the business of renting of [motorcabs or motor cycles to persons desiring to drive either by themselves or through drivers, motorcabs or motor cycles] for their own use and for matters connected therewith.
(2) A scheme made under sub-section (1) may provide for all or any of the following matters, namely:
(a) licensing of operators under the scheme including grant, renewal and revocation of such licences;
(b) form of application and form of licences and the particulars to be contained therein;
(c) fee to be paid with the application for such licences;
(d) the authorities to which the application shall be made;
(e) condition subject to which such licences may be granted, renewed or revoked;
(f) appeals against orders of refusal to grant or renew such licences and appeals against orders revoking such licences;
(g) conditions subject to which motorcabs may be rented;
(h) maintenance of records and inspection of such records;
(i) such other matters as may be necessary to carry out the purposes of this section.
Legal Commentary & Landmark Judgments: Section 75
Section 75 of the Motor Vehicles Act, 1988 establishes the statutory framework empowering the Central Government to frame schemes for the licensing, operation, and regulation of rent-a-cab and self-drive motor vehicle businesses across India.
When advising self-drive car rental startups, ensure full compliance with the Rent a Cab Scheme, 1989 framed under Section 75. Ensure that every vehicle in the rental fleet is registered with commercial black-on-yellow plates (or green-on-yellow for EVs), possesses commercial passenger insurance, and maintains digital driver licence verification logs to insulate the company from vicarious penal liability.