Article 8 of the Saudi Road Transport Law

This article lists the cases in which, by decision of the authority that granted the concession, the concession may be forfeited and the security stated in the concession document confiscated. The cases are:

1. The concession holder refuses to run buses on part of the concession area or line.
2. Running fewer buses than the number required under the terms of the concession.
3. Deviating from the route set under the terms of the concession.
4. Collecting more than the set fares.
5. Assigning to another party the concession to operate all or some of the lines, or substituting another party in all or some of the rights arising from the contract, without prior approval.

Note that forfeiture is discretionary ("may"): if one of these cases occurs, the granting authority is able to take the decision but is not obliged to. Assignment or substitution is also not a ground for forfeiture if approval was given beforehand.

In addition to forfeiture and confiscation, the granting authority may claim compensation from the concession holder for the damage suffered by the service as a result of the forfeiture.

The article is linked to Article 3, which requires the contract conditions list to set the security that the concession holder pays and keeps until the end of the concession, and to Article 7, which gives the city's transport committee the power to record violations and propose penalties. The text does not set out any procedure for challenging a forfeiture decision, so a concession holder concerned should consult a lawyer who specializes in administrative cases and transport regulations.