Bombay High Court directs Uber, Ola to get licences by March 16 or face action

According to earlier HC proceedings, the Maharashtra government had failed to set precise criteria for awarding licences and regulating the activities of such taxi aggregators.

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Observing that app-based taxi firms such as Ola and Uber were operating in Maharashtra without valid licenses, the Bombay High Court directed all such aggregators to apply for valid licenses by March 16 if they wish to continue operations.

In the meantime, the High Court refrained from outlawing such taxis, stating that it understood the move would be detrimental to commuters. "We are aware that the restriction will have a negative impact on passengers who use the services," a bench led by Chief Justice Dipankar Datta said.

The directions were issued by the bench during the hearing of public interest litigation filed by advocate Savina Crasto highlighting the lack of an effective grievance redressal mechanism for customers using the Uber India app.

Crasto cited a November 2020 incident in which she booked an Uber ride in the city and was "dropped off mid-way at a shady dark place," and discovered that the company's app had no effective way to file a complaint.

The Maharashtra government had yet to approve specific guidelines for issuing licenses and regulating the operations of such cab aggregators, according to the HC's previous hearings.

Despite the fact that the Central government issued the Motor Vehicle Aggregator Guidelines, which were intended to regulate such cabs, those in the state were operating under the Maharashtra City Taxi Rules 2017.

CJ Datta stated on Monday that the above arrangement was unacceptable and in violation of the law. "What are you doing, Maharashtra government? This is complete defiance of the law. You're not abiding by the law. The law is clear: if the state government does not have rules, you (aggregators) must follow the guidelines set forth by the federal government. We'll put a stop to it (aggregators)," according to the High Court.

Senior advocate Janak Dwarkadas, who appeared for Uber India, told the court the firm had no intention of flouting the law and added that it had an effective grievance redressal mechanism on its app.

The HC, however, said such a mechanism alone was not adequate. The HC said having a license in accordance with Motor Vehicles Act was mandatory to regulate the operations of all such cab aggregators.

Dwarkadas further said, on March 5 this year, the Union government had called a meeting with aggregators and stakeholders for suggestions on the Central aggregators' rules and guidelines.

"We gave suggestions and objections through videoconferencing. The same was submitted in writing as well, and are currently under consideration," he told the court. The HC, however, asked if it meant aggregators could escape following statutory guidelines so long as the objections were not decided.

"I have been told by my son that Ola, Uber drivers drive for long hours. My son took a picture and sent it to me. He had taken over the wheel of the cab along the Noida Expressway because the driver was dozing off after having been behind the wheel for 24 hours straight," CJ Datta said, adding that such were the conditions under which the drivers had to work.

"We will give you (aggregators) seven days to apply for a license and another 10 days for the state to consider. The law has to be followed," HC said and directed all aggregators to apply to concerned region transport authorities (RTOs) across Maharashtra for license latest by March 16.

"We are pained to observe that despite Central guidelines having been in place since 2020, the state government has permitted aggregators to function in Maharashtra without following the guidelines," it said.

The state government must decide on applications not later than a fortnight from receipt and there must not be an unnecessary delay, the HC said, adding that, in the interim, cabs will continue to operate as they currently are.

After four weeks, the HC will hold another hearing on the matter.

With inputs from PTI