THE Land Transport Authority has grounded six buses belonging to Dalip Chand and Sons Limited in Labasa.
The move follows an incident in which the engine of one of the company's buses caught fire at Waisali Hill on the Savusavu-Labasa highway on Tuesday.
Authority CEO Naisa Tuinaceva said the buses would be inspected until the weekend.
"We need to carry out a thorough investigation and audit all the fleet," he said.
"After identifying the cause of fire, we've tried to get to the bottom of the incident and conduct an inspection to ensure the buses are safe.
"We are doing this in the best interest of the travelling public as we work towards ensuring such problems don't happen again."
Company manager Ronil Chand said the old buses were in good condition but they would add new ones to their fleet.
Ten passengers escaped what could have been another serious bus fire incident at Waisali Hill on Tuesday.
The bus driver noticed smoke coming from the engine compartment and managed to evacuate the passengers safely.