Ola, Uber not to face action until August

The state government on Friday assured the Bombay High Court that it would not take any coercive action against app-based cabs, Ola/Uber, or its drivers for plying within Mumbai city limits on tourist permits, until finalisation of Maharashtra City Taxi rules.

Advocate GW Mattos, appearing for the government, told the court that the committee formed to address the issue, is in the final stage of framing the rules, and once the rules are enforced there would be clarity on the subject. Until then no action against the operators would be taken."

A division bench of Justice R M Sawant and Justice Sadhana Jadhav asked the government to file a detailed affidavit and adjourned the hearing on a bunch of petitions till August. The court while hearing the arguments made by the petitioners, Uber, associations of radio cabs and six drivers of Ola/Uber said, "The kali-peeli taxis hardly ply short distances, if a passenger asks to go from Fountain to Churchgate, they will not come, but these app-based cabs offer convenience to customers, because they are being preferred."

The counsel for the app company also told the court that a huge amount of investment is being made by it in the market and on training of drivers. "If these rules are allowed, then it would force the companies out of business in the city market. Thus the rules it claimed were arbitrary and illegal and should be set aside," said the counsel.

Earlier, also the government had in an affidavit filed before the court said that there is a need to provide commuters with various options for safer, reliable and reasonably priced better quality taxi service, but the services offered by app based cabs like Uber and Ola needs to be regulated to provide for orderly development.

The petition's contention is that these cabs are plying with tourist permits and not on electronic meters unlike other taxis in the state, and hence there is no regulation on the fares. It is also in violation of Motor vehicle Act.