Drivers of illegal passenger vehicles could have their vehicles impounded and their driver's licenses suspended for three to six months under a recently proposed transportation law, local media reported Tuesday.

The proposed law, which is under review by the Shanghai Municipal People's Congress, aims to crack down on vehicles that illegally transport passengers in the city.

From March 5 to April 6, the city's transportation authorities ran a campaign against unlicensed passenger vehicles, impounding 491 vehicles, including 69 clone taxies, the Xinmin Evening News reported.

Under the proposed law, police would be able to impound an unlicensed passenger vehicle and slap its driver with a fine ranging from 20,000 yuan ($3,208) to 50,000 yuan, according to a report on the news website xinmin.cn.

In serious cases, authorities could suspend the driver's license of the offender, the Xinmin Evening News reported.

The proposed law also allows police to fine motorcyclists transporting passengers from 1,000 yuan to 5,000 yuan.

Vehicles impounded for more than 60 days will be put up for auction. The measure aims to discourage drivers from putting off paying their fines.

In most cases, drivers of unlicensed passenger vehicles avoid punishment because authorities need a passenger's complaint to punish them, said Chen Zhaohui, a press officer with the Law Enforcement Department of the Shanghai Municipal Transport and Port Authority.