The Bihar State Road Transport Corporation was set up under the Road Transport Corporations Act. 1950(Act 64 of 1950); a Parliamentary Act by a Notification dated 1st May 1959. Before this date thers was a Transport Organisations under the Transport Department of the State Government known as "Rajya Transport", Initially for sake of Administration & operational purpose corporation was divides into 06 (Six) Divisions namly Patna, Gaya Bhagalpur, Muzaffarpur, Ranchi and Jamshedpur with total no of is employee 4500 and strength of operational Buses was 1100 Aprox.

First Chairman of the Board was Sri Rameshwar Prasad Sinha
The Central Act of 1950 provided that the State Government, having regard to,

  • (a)   The advantage offered to the public, trade and industry by the development of road transport:
  • (b)   The desirability of extending and improvising the facilities for road transport in any area, and of providing, an efficient and economical system of road transport service therein.
  • (c)   The desirability of extending and improving the facilities for road transport in any area, and of providing an efficient and economical system of road transport service therein.

Section 4 of the Act lays down that the corporation shall be a body corporate having a perpetual succession and a common seat and shall by the said name sue and be sued. By Section 5 of the Act the management of the corporations is vested in a Board of Directors to be appointed by the State Government. The Board shall consist of a chainman, a Managing Director and a number of Directors subject to provision of section 5(2). There are also supplementary provisions in the same section for representation of the Central Government and other shareholders, if any, on the Board.

The Managing Director of the Corporation, a Chief Account Officer and a Financial Advisor are to be appointed by the State Government u/s 14 of the Act. The Corporation may appoint its other employees and determine their conditions of appointment and service conditions. Section 34 of the Act. Provides that the State Government may, after consultation. Such instructions may include relating direction to the recruitment, conditions of service and training of its employees, wages to be paid to the employees, reserves to be maintained by it and disposal of its profits and stocks.

The general duty of the Corporation u/s 18 of the Act is to provide or secure or promote the provision of an efficient, adequate, economical and property coordinated system of road transport, services in the State,. Section 22 lays down that it shall be the general principle of the Corporation that in carrying on its undertaking it shall act on business principles.

If the State Government is of the opinions that corporation is unable to perform, or has persistently made default in the performance of the duties imposed upon it by or under the provisions of the Act, or has exceeded or abused its explanation has to be considered before such supersession. On 12th October 1999 under the Provision section 38 of Road Transport Corporation Act 1950 the Board was Supersede and an Administrator was appointed by the Government as their representative still it is Continuing.