Taxi-like services for bikes, such as Ola, Uber, and Rapido, have allegedly been directed to cease operations by the Delhi transport department.
The Delhi transport authorities reportedly requested that bike aggregators like Ola, Uber, and Rapido suspend their two-wheeler cab services in the country's capital.
The transport department has previously warned bike taxis against operating in Delhi, citing the Motor Vehicles Act, 1988 as the reason why doing so would result in a punishment of Rs 1 lakh for aggregators.
The Motor Vehicles Act of 1988 prohibits the usage of motorcycles for profit. The department warned in a public notice that violators might face a punishment of Rs 5,000 for a first offence and a fine of Rs 10,000 and up to a year in jail for a second offence. The driver's licence will be suspended for three months as a result.
The warning said that certain app-based businesses are falsely advertising themselves as aggregators in contravention of the 1988 statute. An anyone found guilty of this would have to pay a fine of Rs 1 lakh.
The Supreme Court, earlier last month, did not overturn the Maharashtra government's decision not to licence bike taxi aggregator Rapido.
According to the bench led by Chief Justice D.Y. Chandrachud, the 2019 revisions to the Motor Vehicles Act make it abundantly obvious that an aggregator cannot function without a proper licence.
The panel, which also included justices P.S. Narasimha and J.B. Pardiwala, pointed out that the Pune RTO had denied the company's licence application back in December 2022.
The Supreme Court heard Rapido's appeal from the Bombay High Court, which had previously rejected the company's request for a hearing on its challenge to the state government's decision not to provide it a licence to operate as a two-wheeled bike taxi aggregator.
The Supreme court said that the corporation might go to the high court to contest the January 19 notification issued by Maharashtra, and it also urged the high court to look at the case independently of the prior ruling.
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The state administration has said that there is no regulation on the licencing of bike taxis or the fee structure of bike taxis. It argued before the state's highest court that a committee has been formed to look at creating standards for bike taxis in the state.
Once the high court found that the firm was providing services without first obtaining the necessary permits from the Maharashtra government, it ordered that the services be immediately suspended.
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