Kerala orders review of tourist bus colour code amid operator exodus

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Kerala orders review of tourist bus colour code amid operator exodus

Synopsis

Kerala's tourist bus colour code — introduced after a High Court order in 2021 — is now under formal review after operators began registering vehicles in other states to escape restrictions that no other state imposes. The state stands to lose motor vehicle tax and permit revenue, giving the government a fiscal incentive, beyond the industry pressure, to align with Central rules.

Key Takeaways

Kerala has directed the State Transport Authority (STA) to review the uniform colour code for tourist buses introduced in 2021 .
Transport Secretary T.V.
Anupama issued a gazette notification invoking Section 67(1)(d) of the Motor Vehicles Act, 1988 .
The All India Tourist Vehicles (Permit) Rules, 2023 prescribe no colour for tourist vehicles, creating an uneven playing field for Kerala operators.
Some operators have registered buses in other states to avoid Kerala's colour restrictions, threatening state motor vehicle tax and permit fee revenue.
The Kerala High Court's road safety directions — including the ban on large film star images on buses — will remain in force regardless of the review outcome.
The STA will decide whether to retain, modify, or scrap the existing colour code; no timeline has been specified.

The Kerala government has directed the State Transport Authority (STA) to review the uniform colour code it mandated for tourist buses in the state, following sustained complaints from the tourism and transport sectors that the restrictions are out of step with rules followed elsewhere in the country. Transport Secretary T.V. Anupama has issued a gazette notification invoking Section 67(1)(d) of the Motor Vehicles Act, 1988 to set the review in motion.

Background: The 2021 Colour Code

Kerala introduced the uniform colour code for contract carriage vehicles, including tourist buses, in 2021 under the Kerala Motor Vehicles Rules. The move followed a direction from the Kerala High Court on road safety. The court had simultaneously directed that large photographs and writings of film stars must not be displayed on the body or safety glass of buses — a restriction that will remain in force regardless of the outcome of this review.

Why Operators Are Complaining

The core grievance is an uneven playing field. The Central government's All India Tourist Vehicles (Permit) Rules, 2023 do not prescribe any specific colour for tourist vehicles. As a result, tourist buses operating on All India Tourist Permits from other states can freely enter Kerala without facing the same colour requirements imposed on locally registered operators. According to the government order, some operators have gone so far as to register their vehicles in other states specifically to sidestep Kerala's colour restrictions.

Revenue and Policy Implications

The state government has acknowledged that the registration shift is a fiscal concern. Operators registering outside Kerala means the state loses out on motor vehicle tax and permit fee revenue. This financial argument appears to have added urgency to the review alongside the industry's competitiveness concerns. Notably, this is the first formal government-level intervention on the issue since the colour code was introduced over three years ago.

Scope of the Review

The STA has been asked to examine the existing colour code in light of the Central rules and the High Court's earlier directions, and to decide whether it should be retained, modified, or changed entirely. The government has been explicit that the road safety dimensions of the High Court order — particularly the ban on large film star images and writings on bus bodies and safety glass — are not up for reconsideration. The final call rests with the State Transport Authority.

What Comes Next

The STA's review is expected to weigh Kerala's standalone framework against national standards and produce a fresh decision. Industry stakeholders in the tourism and transport sectors will be watching closely, as the outcome could affect vehicle registration patterns, inter-state competition, and the state's share of the tourist transport market. A decision that aligns Kerala's rules more closely with the Central permit framework could stem the operator exodus to other states.

Point of View

Rooted in a High Court safety directive, but the Centre's 2023 tourist vehicle rules effectively rendered it a unilateral burden on local operators. The operator exodus to other states is a textbook case of regulatory arbitrage, and the government is right to respond. The more instructive question is why it took over three years and visible revenue leakage to trigger a formal review — and whether the STA will now proactively audit other state-specific transport rules that may be similarly misaligned with national standards.
NationPress
29 Sept 2026

Frequently Asked Questions

Why is Kerala reviewing its tourist bus colour code?
Kerala is reviewing the colour code because the Central government's All India Tourist Vehicles (Permit) Rules, 2023 do not mandate any specific colour for tourist vehicles, leaving Kerala operators at a disadvantage compared to buses from other states. Some operators have also begun registering vehicles outside Kerala to avoid the restrictions, affecting state revenue.
When was the tourist bus colour code introduced in Kerala?
Kerala introduced the uniform colour code for contract carriage vehicles, including tourist buses, in 2021 under the Kerala Motor Vehicles Rules, following a direction from the Kerala High Court on road safety.
Will the Kerala High Court's road safety directions be withdrawn as part of this review?
No. The government has clarified that the High Court's road safety directions — including the prohibition on large film star photographs and writings on bus bodies and safety glass — will continue to apply. Only the colour code aspect is under review.
Who will make the final decision on the colour code?
The State Transport Authority (STA) will make the final decision after examining the issue in light of the Central rules and the High Court's earlier directions. The STA can choose to retain, modify, or change the existing colour code.
How does this affect Kerala's revenue?
According to the government order, some tourist bus operators have registered their vehicles in other states because of Kerala's colour restrictions. This means Kerala loses out on motor vehicle tax and permit fee revenue, which the government has cited as a reason to revisit the policy.
Nation Press
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