Section 93: Agent or canvasser or aggregator to obtain licence

Motor Vehicles Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1988

Legal Commentary & Landmark Judgments: Section 93

Section 93 of the Motor Vehicles Act, 1988 mandates that no person shall act as an agent, canvasser, or digital transport aggregator (such as ride-hailing platforms) without obtaining a statutory licence from the designated authority and complying with Central Government regulatory guidelines.

  • Statutory Licensing Mandate: Under Section 93(1), no person or corporate entity shall engage in the business of collecting, forwarding, or distributing goods (cargo agents), booking tickets for public service vehicles, or acting as a digital transport aggregator without holding a valid statutory licence.
  • Inclusion of Digital Aggregators (2019 Amendment): Act 32 of 2019 brought digital transport aggregators (app-based taxi and delivery platforms) directly into the statutory ambit of Section 93, subjecting them to the Motor Vehicle Aggregator Guidelines, passenger safety protocols, surge pricing caps, and driver background verification.
  • Regulatory Conditions and License Revocation: Licences are granted subject to prescribed security deposits, financial solvency proofs, data privacy compliance, and vehicle tracking standards; non-compliance empowers the licensing authority to suspend or revoke the licence under Section 93(2).
Key Landmark Precedents:
  • Uber India Systems Pvt. Ltd. v. Union of India, 2020 SCC OnLine Bom 2738: The Bombay High Court held that digital transport aggregators are governed by Section 93 as amended in 2019 and must obtain statutory licenses from the State Transport Authority, complying with national aggregator guidelines to operate legally on public roads.
  • ANI Technologies Pvt. Ltd. (Ola) v. State of Karnataka, 2016 SCC OnLine Kar 8218: The Karnataka High Court affirmed the regulatory competence of State transport departments to enforce on-demand transportation technology aggregator rules under Section 93 to ensure commuter safety and fare regulation.
Courtroom Practice & Strategic Litigation Guidance:

In litigation involving digital cab aggregators or freight booking platforms, verify whether the operator holds a valid Section 93 licence issued by the State Transport Authority. In passenger sexual assault or road accident compensation claims against app-based platforms, plead non-compliance with Section 93 licensing conditions and Central Aggregator Guidelines to establish direct corporate tort liability alongside driver default.