The Motor Vehicles Act, 1988

104. Restriction  on grant  of permits  in respect  of a notified area or  notified route.

Where a scheme has been published under sub- section (3) of section 100 in respect of any notified area or notified  route,  the  State  Transport  Authority  or  the  Regional  Transport  Authority, as  the case  may be,  shall not grant any permit except in  accordance with the provisions of the scheme:

Provided that  where no application for a permit has been made by  the State  transport undertaking  in respect  of any  notified area or notified route in pursuance of an approved scheme, the State Transport Authority or the Regional Transport Authority, as the case may be, may grant temporary permits to any person in respect of such notified area or notified  route subject  to the  condition that  such permit  shall cease to  be effective on the issue of a permit to the State transport undertaking in respect of that area or route.