Section 215B(17) in The Punjab Motor Vehicles Rules, 1989
(17)If the offending vehicle is not covered by the policy of insurance against third parry risks or the driver was not holding a valid driving licence or if the registered owner fails to furnish copy of the insurance policy or the driving licence of the driver, the motor vehicle involved in an accident resulting bodily injury or damage to property, shall not be released, unless and until the registered owner, furnishes sufficient security to the satisfaction of the court, to pay compensation that may be awarded in a claim case arising out of such accident. On the expiry of three months of the vehicle being taken in possession by the Investigating officer such motor vehicle shall be sold off in public auction by the Magistrate, having jurisdiction over the area where accident occurred, and proceeds thereof, shall be deposited with the Claims Tribunal having jurisdiction over the area in question, within fifteen days for purpose of satisfying the compensation that may have been awarded or may be awarded in a claim case arising out of such accident.Provided there the vehicle involved in an accident is having issuance certificate and the driver of the said vehicle having a valid driving license then the Investigation Officer, shall release the vehicle on superdari at his own level.
