Provincial Traffic officials pulled over an overloaded taxi near Needs Camp outside East London on Wednesday morning crammed with 28 school children.
The taxi is licenced to transport 14 passengers.
Eastern Cape Transport department spokesperson Ncedo Kumbaca says the driver was arrested and is expected to appear in court in Zwelitsha on Wednesday.
Kumbaca says alternative transport was arranged to get the learners to school and that his department's campaign to prevent abuse of the scholar transport programme will continue.