However, those found to be driving with fake licences may soon be jailed for up to a year in addition to a hefty penalty of Rs 10,000 -- up from the current penalty provision of Rs 500 and a maximum jail term of three months.
In case of juvenile drivers, the owner of the vehicle or the driver's guardian will face stricter penalties of up to three years in jail and fine of up to Rs 20,000, while their vehicle registration certificate may also be cancelled.
An official said the Ministry has collated data of about 18 crore licences and an estimated 5.4 crore of them fall under the "bogus" category, which need to be checked.
An earlier government survey of about six crore driving licences had found nearly 74 lakh fake ones.
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Gadkari said the Bill has been facing delays due to
opposition from "vested interests" in Regional Transport Offices who are opposed to "transparency and computerisation".
Besides computerisation, the government also plans to set up 5,000 new driving centres, he added.
A Group of Ministers, headed by Rajasthan Transport Minister Yunoos Khan, has submitted its preliminary report that proposes hefty penalty for traffic violations.
Sources said the preliminary report has suggested that if a person is found "driving after disqualification under the Act or applying or obtaining license without disclosing the fact", he or she will face imprisonment up to one year and a fine of up to Rs 10,000.
The GoM has also recommended that the guardian of a juvenile caught driving may face imprisonment of up to three years and fine up to Rs 20,000, besides cancellation of the vehicle registration.
In case of grievous hurt or death caused by the juvenile's act of driving, the driver would be sentenced to Children's Home and there will be "no provision of bail" if the driver has been previously challanned for any offence under the Motor Vehicles Act.
The GoM, tasked to frame the Bill to make significant modifications to the Central Motor Vehicles Act, 1988, has come out with several other suggestions for stricter punishment for the rule breakers. The GoM includes seven Transport Ministers from various states, including Karnataka, Rajasthan, Goa and Haryana.