Registration of Goods Booking Companies by Delhi Government

The Delhi Govethment, has taken a bold initiative in regulating the Goods Booking Companies, also known as Public Carrier Goods Agents by bringing them under the ambit of section 93 of the Motor Vehicle Act 1988 and rule 82 of Delhi Motor Vehicle Rules, 1993. There has been an unbridled growth of the goods booking companies, which have been instrumental in large-scale tax avoidance in NCT of Delhi and neighbouring districts of Haryana and Uttar Pradesh. The impact of this move has nationwide ramification and could lead to a major shake out in the commercial goods transport business.

The Indian Foundation of Transport Research and Training (IFTRT), an independent research body engaged in monitoring commercial road transport sector, had carried out a detailed survey on the activities of goods booking companies, their impact on trade and commerce and related malpractices being indulged into by majority of transporters. It also submitted to Government an update detailing the loss of revenue and risk to the consignors/consignees.

As a result, the Delhi Government has issued a notice to the Road Transporters/Goods Booking Companies/Agents to register themselves, by obtaining licence, under section 93 of MV Act 1988 before 31st March 2004, as they are directly or indirectly engaged in the business of collecting, forwarding and/or distributing goods carried through the goods carriages. The notice spells out the duties, responsibilities and liabilities of the Public Carrier Goods Agents.

There are over 5000 such entities in NCT of Delhi and almost, 1,10,000 goods booking intermediaries at national level who control 95 per cent trucking operations all over the country.

Similar attempts to discipline the Commercial Road Transport Sector by the Government have been thwarted earlier by the powerful and resourceful lobby of Transport Companies/ Agents and their associations in the last decade. It is important to regulate the transporters, some of whom have been entering or making exit from the trade without any accountability, thereby causing serious losses to the goods booking business community (consignor/consignee) and also to the State exchequer by carrying unaccounted goods.