(1) A Regional Transport Authority shall, while considering an application for a stage carriage permit, have regard to the objects of this Act:
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     (2) A Regional Transport Authority shall refuse to grant a stage carriage permit if it appears from any time-table furnished that the provisions of this Act relating to the speed at which vehicles may be driven are likely to be contravened:
     Provided that before such refusal an opportunity shall be given to the applicant to amend the timetable so as to conform to the said provisions.
     (3) (a) The State Government shall, if so directed by the Central Government having regard to the number of vehicles, road conditions and other relevant matters, by notification in the Official Gazette, direct a State Transport Authority and a Regional Transport Authority to limit the number of stage carriages generally or of any specified type, as may be fixed and specified in the notification, operating on city routes in towns with a population of not less than five lakhs.
     (b) Where the number of stage carriages are fixed under clause (a), the Government of the State shall reserve in the State certain percentage of stage carriage permits for the scheduled castes and the scheduled tribes in the same ratio as in the case of appointments made by direct recruitment to public services in the State.
     (c) Where the number of stage carriages are fixed under clause (a), the Regional Transport Authority shall reserve such number of permits for the scheduled castes and the scheduled tribes as may be fixed by the State Government under sub-clause (b).
     (d) After reserving such number of permits as is referred to in clause (c), the Regional Transport Authority shall in considering an application have regard to the following matters, namely:--
         (i) financial stability of the applicant;
         (ii) satisfactory performance as a stage carriage operator including payment of tax if the applicant is or has been an operator of stage carriage service; and
             (iii) such other matters as may be prescribed by the State Government:
     Provided that, other conditions being equal, preference shall be given to applications for permits from--
         (i) State transport undertakings;
         (ii) co-operative societies registered or deemed to have been registered under any enactment for the time being in force; ²***
         (iii) ex-servicemen; ³[or]
         ³[(iv) any other class or category of persons, as the State Government may, for reasons to be recorded in writing consider necessary.]
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     Explanation.--For the purposes of this section "company" means any body corporate, and includes a firm or other association of individuals; and "director", in relation to a firm, means a partner in the firm.
                                                    STATE AMENDMENT
    Kerala--
    Amendment of section 71.--In section 71 of the Motor Vehicles Act, 1988 (Central Act 59 of 1988), (hereinafter referred to as the principal Act), in sub-section (4).--
        (i) for the words "five" and “ten", the words "ten" and "fifty" shall, respectively, be substituted;
        (ii) for the words "any company", the words "any co-operative society or to any company" shall be substituted.
    [Vide Kerala Act 12 of 1993, sec. 2.]