The Motor Vehicles Act, 1988

207.  Power to detain vehicles used without certificate of registration permit, etc.

1. Any police  officer  or  other  person authorised in  this behalf by the  State Government  may, if  he  has reason to  believe that  a motor  vehicle has been or is being used in contravention of  the provisions  of section 3 or section 4 or section 39 or  without the permit required by sub-section (1) of section 66 or in contravention of any condition of such permit relating to the route on which or the area in which or the purpose for which the vehicle may be used,  seize and  detain the  vehicle, in the prescribed manner and for this  purpose take  or cause to be taken any steps he may consider proper for the temporary safe custody of the vehicle:Provided that  where any  such officer  or person  has reason  to believe  that   a  motor   vehicle  has  been  or  is  being  used  in contravention of section 3 or section 4 or without the permit required by sub-section  (1) of  section 66  he may,  instead  of  seizing  the vehicle, seize  the certificate  of registration  of the  vehicle  and shall issue an acknowledgment in respect thereof.
2. Where a motor vehicle has been seized and detained under sub-section (1),  the owner  or person  in charge of the motor vehicle may apply to  the transport  authority or  any officer  authorised in this behalf by  the State  Government together  with the relevant documents for the  release of  the vehicle  and such  authority or  officer may, after verification  of such  documents, by  order release  the vehicle subject to such conditions as the authority or officer may deem fit to impose.