Govt. of India, Ministry of Transport took over the local bus services in Delhi in
May 1948 in the name of Delhi Transport Service when they found that the services
offered by Gawalior and Northern India Transport Company Ltd., the then licensee,
were inadequate. A Delhi Road Transport Authority was constituted under the Road
Transport Corporation Act, 1950. This Authority became undertaking of Municipal Corporation
of Delhi by an Act of Parliament in April, 1958.
On the recommendation of a Working Group of Planning Commission which concluded that
Delhi Transport as an extension of Municipal Corporation of Delhi had not been functioning
efficiently and adequately resulting in leakage of revenue and very high operation
cost, Govt. of India took over the management of the undertaking by passing the Delhi
Road Transport Laws (Amendment) Act, in 1971. It took over the assets and liabilities
from the erstwhile Delhi Transport Undertaking (DTU) operated by the Municipal Corporation
of Delhi till 2nd Nov,1971. Thus the DTC was set up in 1971. In section 22 of the
Road Transport Corporation Act, 1950, following objectives were laid down for the
To provide or secure or promote an efficient, economical, reliable and properly coordinated
system the road transport in Union Territory of Delhi and any extended area. In doing
so, it shall act on business principles. To achieve a high level operational efficiency.
To charge fares not exceeding those prescribed by the State Under Section 43(1)(i)
of the Motor Vehicle Act, 1939. To attain financial self-sufficiency.
DTC which was functioning under the administrative control of Govt. of India, was
finally taken over by Govt. of NCT, Delhi on 05.08.96.