Punjab's Deputy Chief Minister Sukhbir Singh Badal, who is also a co-owner of the bus company, has ordered that all vehicles be stopped from plying their trade in the area.
He said the buses will remain off the roads until the completion of an orientation course by the drivers.
In a ghastly reminder of the 2012 Delhi gang rape and murder case, a similar incident was reported in Punjab Wednesday night.
A woman and her teenage daughter were on their way to visit their relatives when they were allegedly molested and thrown off a moving bus. The young girl died on the spot, while her mother was seriously injured.
The police have arrested four people in connection to the incident, including the bus driver, conductor, a helper and their friend.
The shocking incident triggered a political firestorm when it surfaced that the bus company is part-owned by the Chief Minister's family.
Opposition parties have held protests outside Chief Minster Parkash Singh Badal's residence, asking him and his son to resign from their offices.
The molestation case has again raised concern over women's safety in India. Women's rights activists feel that measures taken by the government in the aftermath of the Delhi gang rape have failed to evoke changes for the better.
According to the latest data sourced from Delhi Police, almost 300 cases of rape and more than 500 cases of molestation were registered in the capital in the first two months of this year.
For CRI, I'm Sun Yang in New Delhi.
