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Ola, Uber operating illegally, says Delhi High Court status report

The status report notes that according to the government notification, peak time charge and surge prices are illegal.

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On Saturday, the Delhi Transport department outlined the initiatives it undertook to curb 'peak time charge' and 'surge pricing' by app-based taxi operators in a status report submitted to the Delhi High Court.

The status report submitted in front of Justice JR Midha, was filed in response to a plea filed by Magic Sewa Pvt Ltd, a taxi service operator, which stated that the app-based taxi operators were plying illegally and charging beyond the government prescribed rates.

Advocate Pranav Sachdeva representing Magic Sewa told the Delhi HC that the government had failed in taking an action against these unlicensed taxi operators.

Over four-pages, the report stated that operations by Ola and Uber are illegal since their registration was cancelled through a notification issued in June, 2015.

The 14-point report also highlighted the fact that under Section 67 of the Motor Vehicles Act, city-based taxi operators can only charge as per government rates. There is no provision in the relevant sections for surge pricing. According to a government notification, taxi operators can charge Rs 12.5/kilometre. However, due to surge pricing, the rates with Uber and Ola would go up to Rs. 40-50/kilometre.

The Transport department further outlined the steps it undertook against those autos and taxis flouting the rules. The government said it would cancel permits and impound vehicles if anybody flouted the rules. A help line has been set up where commuters can call -- on 011-42400400, and register their grievances.

According to the report, the transport department issued 119 challans during the odd-even scheme. Most of the challans were issued against drivers plying for the illegal app-based operators.

On Monday the Delhi government condemned the app-based taxi operators for taking advantage of the 2nd part of the odd-even scheme. This step was taken after the government received complaints from numerous commuters regarding surge pricing that went as high as 5 times the fare.

"The Delhi chief minister Arvind Kejriwal has taken cognizance of the situation by making a public statement warning the taxi aggregators of strict action, including permit cancellation and impounded vehicles," the status report said.

In response, Uber sent out messages to the commuters stating that surge pricing ensured the availability of taxis. It is interesting to note, that since the suspension of peak time charge and surge pricing, commuters are facing undue hassle in booking cabs. Taxis are no longer available -- even during normal daylight hours.

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