"The Road, Transport and Safety Bill has been deferred," sources told PTI.
The bill, which will amend the Motor Vehicles Act, also proposes stringent measures against automakers for faulty designs of vehicles.
The draft bill, as per officials, proposes hefty penalties including Rs 10,000 for drunk driving, Rs 2,000 for speeding and Rs 1,000 for not wearing seat belts etc.
Road Transport and Highways Minister Nitin Gadkari had last week said that the government was hopeful of introducing the Bill in the ongoing session of Parliament.
Indian roads witness 400 deaths every day. India sees nearly five lakh road accidents a year in which 1.5 lakh people die and another 3 lakh get crippled.
The bill has been drafted as per recommendations of a group of Transport Ministers of different states, headed by Rajasthan Transport Minister Yunoos Khan.