New York, Oct 8 (AFP) The limousine involved in the deadliest transport accident in the United States for nearly a decade had failed inspection and the driver was not properly licensed, a top official has said.

Twenty people were killed when the SUV-style stretch vehicle careened out of control on Saturday in Schoharie, a town in New York state, killing all 18 occupants and two pedestrians. The passengers of the limo -- including four sisters, newlyweds and young couples -- were all celebrating a birthday party, according to US media.

The driver lacked the appropriate licence to operate that vehicle and the limousine last month failed a state inspection and was not supposed to be on the road, Governor Andrew Cuomo said Monday.

He said a federal government and state police investigation are ongoing, and the cause of the accident remains unclear. But the company that operated the limo has been served a cease and desist order until the investigation is concluded, Cuomo added.

"The owner of the company had no business putting a failed vehicle on the road," the governor said.

Police said the 2001 Ford Excursion failed to stop at an intersection and continued into a parking lot, ultimately crashing into a parked car. It was the deadliest transport accident in the United States since a Colgan Air Flight from Newark, New Jersey to Buffalo, New York crashed in February 2009, killing 49.

Saturday's tragedy unfolded outside the Apple Barrel Country Store and Cafe in Schoharie, a three-hour drive north of Manhattan. (AFP) IJT

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)