Madras High Court Suspends Bus Permit for Overcharging Fare

The Madras High Court ordered a private town bus on the Ukkadam – Gandhipuram route to suspend operations from June 27, 2024, for one week due to charging ₹2 extra fare.


Coimbatore: In a landmark ruling, the Madras High Court has ordered the suspension of a private town bus permit for one week, starting from June 27, 2024, addressing consumer complaints about overcharging. The bus, which operated on the Ukkadam – Gandhipuram route, was found to be collecting ₹2 in excess of the designated fare.

This punitive action, as confirmed by K. Kathirmathiyon of the Coimbatore Consumer Cause (CCC), marks the first instance where a bus permit has been suspended for excess fare collection, highlighting a significant shift towards stricter enforcement of fare regulations.

In a public interest litigation filed by the CCC, the court emphasized the necessity for stringent measures against the rampant issue of fare overcharging by transport operators. The High Court's observation pointed out that mere fines were insufficient, and that the Act of 1988, along with related rules, also permits the suspension or cancellation of permits as a corrective measure.

Historically, both private operators and units of the Tamil Nadu State Transport Corporation (TNSTC) have been reported to overcharge passengers. According to Mr. Kathirmathiyon, while offenders are typically only fined, which they pay and continue their practices, this does not provide a lasting solution or relief to the public. The recent court order represents a more severe approach to deter such malpractices and sends a crucial message to all transport operators.

The CCC has also urged the court to extend similar actions towards TNSTC buses and to hold accountable the conductors who play a direct role in overcharging fares. Rule 80 of the Central Motor Vehicle Rules mandates that conductors cannot legally demand a fare beyond what is approved by the Regional Transport Authority/State Transport Authority, and these approved rates must be prominently displayed inside buses.

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