PUNJAB MOTOR VEHICLE TRANSACTION LICENSEES ACT 2015

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THE PUNJAB MOTOR VEHICLE TRANSACTION 
LICENSEES ACT 2015 
(XXVII of 2015) 
CONTENTS 
1. Short title, extent and commencement 
2. Definitions 
3. Motor vehicle transaction licensee 
3-A. Motor vehicle transaction licensee to act as withholding agent 
4. Procedure for licensing 
5. Renewal of licence 
6. Service charges 
7. Maintenance of record and account 
8. Cancellation and suspension of license 
9. Recovery of dues 
10. Offence 
11. Cognizance and summary trial 
12. Power to make rules 
 
TEXT 
THE PUNJAB MOTOR VEHICLE TRANSACTION LICENSEES ACT 2015 
(XXVII of 2015) 
[19th June, 2015] 
An 
Act 
to license and regulate the services of the motor vehicle transaction licensees 
for improved service delivery to the purchasers of motor vehicles. 
It is necessary to regulate the services of the motor vehicle transactio n 
licensee acting on behalf of the owners of motor vehicles for purposes of registration 
of motor vehicles and to provide for ancillary matters; 
Be it enacted by the Provincial Assembly of the Punjab as follows:– 
1. Short title, extent and commencement .– (1) This Act may be cited as the 
Punjab Motor Vehicle Transaction Licensees Act 2015. 
(2) It extends to the whole of the Punjab. 
(3) It shall come into force at once. 
2. Definitions.– (1) In this Act: 
(a) “Government” means Government of the Punjab; 
“licence” means a licence issued under the Act;  
(b) “licensing authority” means an officer of Excise and Taxation 
Department, not below the rank of Director Excise and Taxation, 
notified by the Government as licensing authority under the Act; 
(c) “motor vehicle transaction lic ensee” means a motor vehicle dealer or 
agent licensed under the Act; 
(d)  “Ordinance” means the Provincial Motor Vehicle Ordinance 1965 (XIX 
of 1965); 
(e) “prescribed” means prescribed by the rules made under the Act; and 
(f) “transaction” means any activity relating to registration of a motor 
vehicle under the Ordinance on behalf of the owner of a motor vehicle 
and includes a transaction relating to any change or endorsement in a 
registration certificate’ booklet (Form-G) or issuance of number plates. 
(2) A word or te rm, used in this Act but not defined, shall mean the same 
as in the Ordinance. 
3. Motor vehicle transaction licensee .– (1) A person shall not undertake a 
transaction on behalf of the owner of a motor vehicle unless he holds a licence 
issued under this Act.  
(2) The licensing authority may, in the prescribed manner, grant licence 
subject to such conditions as it may impose. 
(3) The licensing authority shall not issue a licence if the applicant: 
(a) is a minor; or 
(b) is declared to be of unsound mind or un-discharged insolvent by a court; 
or 
(c) has been convicted of an offence of criminal misappropriation or criminal 
breach of trust or cheating or any other offence involving moral turpitude, 
and a period of three years has not elapsed since completion of the  
sentence. 
(4) A motor vehicle transaction licensee may undertake such functions as 
may be specified in the terms and conditions of the license issued under this Act and 
the rules. 
(5) The Government may prescribe criteria for grant of licence and 
conditions for the conduct of the business of a motor vehicle transaction licensee. 
1
[3-A. Motor vehicle transaction licensee to act as withholding agent .– (1) All 
motor vehicle transaction licensees shall act as the withholding agents for the 
purposes of the Act. 
 (2) No authorized dealers shall act without obtaining motor vehicle 
transaction license under the Act. 
 (3) No motor vehicle transaction licensee shall deliver the sold vehicle to the 
owner or any other person unless: 
(a) such motor vehicle is registered in terms of the Ordinance; 
(b) all prescribed fee, taxes and such other duties and charges have been 
withheld and deposited to the Government in such manner as may be 
prescribed; and  
(c) standardized number plates, as approved by the Government, hav e 
been displayed on such motor vehicle. 
 (4) In case of any violation of sub -section (3), the motor vehicle licensee 
shall be liable to pay the amount of prescribed fee, taxes, duties and other charges 
along with the fine equal to the said amount in such manner as may  be prescribed.] 
4. Procedure for licensing.– (1) A person, who wishes to obtain a licence, shall 
make an application to the licensing authority in such form and manner and on 
payment of such fee and furnishing of such security as may be prescribed. 
(2) If the applicant for a licence fulfills the requirements and does not suffer 
from any of the disqualifications, the licensing authority may, in the prescribed manner, 
grant the licence to the applicant. 
5. Renewal of licence.– (1) A licence shall be valid for a period of one year and 
may be renewed annually subject to such conditions as may be prescribed. 
                                                           
1Inserted by the Punjab Finance Act 2026 (L of 2026), published in the Punjab Gazette (Extraordinary), dated: 1st July 2026, pp. 
21-24, s.6. 
  
(2) A motor vehicle transaction licensee shall, within thirty days preceding 
the date of expiry of his licence, apply to the licensing authorit y, in such form and 
manner and on payment of such fee as may be prescribed, for renewal of the licence. 
(3) If the motor vehicle transaction licensee fulfills the requirements and 
conditions, and does not suffer from any of the disqualifications, the licensing authority 
may, in the prescribed manner, renew the licence. 
6. Service charges .– The Government may prescribe a maximum rate of 
service charges which a motor vehicle transaction licensee may charge for a 
transaction of a motor vehicle or a category of motor vehicles. 
7. Maintenance of record and account .– (1) A motor vehicle transaction 
licensee shall, in the prescribed manner, maintain such accounts and other record of 
all the transactions as may be prescribed. 
(2) The licensing authority may direct a motor vehicle transaction licensee to 
furnish information and produce the accounts or record of any transaction before the 
licensing authority or such other officer as may be designated or prescribed. 
8. Cancellation and suspension of license.– (1) The licensing authority may, by 
an order in writing, suspend a licence for such period not exceeding three months for 
the first breach and not exceeding six months for the second or subsequent breach, as 
may be specified in that order, or may cancel the licence if it is satisfied that the motor 
vehicle transaction licensee has committed a breach of any of the conditions of the 
licence or has: 
(a) failed satisfactorily to maintain the prescribed record; 
(b) maintained or submitted incorrect accounts of the transactions; 
(c) arranged or negotiated a transaction knowing that there was a defect or 
dispute in the identity or documents in the title of the motor vehicle;  
(d) charged service charges or remuneration at a rate higher than the 
prescribed rate; 
(e) charged fee or tax in excess of the prescribed rate or misappropriated 
any amount charged from the customer; or 
(f) misplaced registration documents or any other allied documents or 
tempered with any of such documents handed over to him for purposes 
of a transaction. 
(2) The licensing authority shall not pass an order under subsection (1) 
without giving the motor vehicle transaction licensee an opportunity to show cause 
within ten days from the date of the receipt of the notice and after affording him an 
opportunity of personal hearing. 
(3) A motor vehicle transaction licensee, aggrieved by an order passed 
under subsection (1), may, within thirty days of the passing of the order, prefer an 
appeal to the appellate authority and the decision of the appellate authority shall be 
final. 
(4) The Government shall, by notification, appoint an appellate authority for 
purposes of this section. 
9. Recovery of dues.– Any amount due under this Act shall be recoverable as 
arrears of land revenue. 
10. Offence.– If a person contravenes any of the provisions of this Act, he shall be 
liable to punishment of simple imprisonment which may extend to six months or fine 
which may extend to forty thousand rupees or both. 
11. Cognizance and summary trial .– (1) No court shall take cognizance of  an 
offence under this Act except on a complaint made in writing by the licensing authority. 
(2) A Magistrate of the first class shall conduct the trial of an offence under 
this Act in accordance with the provisions of Chapter XXII of the Code of Criminal 
Procedure 1898 (V of 1898) relating to the summary trials. 
12. Power to make rules .– The Government may, by notification, in the official 
Gazette, make rules for carrying out the purposes of this Act.