2-Wheeler Taxis Can't Run In Delhi For Now, Says Supreme Court

In a setback to cab aggregators, the Supreme Court today stayed the earlier High Court order that essentially allowed bike-taxi aggregators Rapido and Uber to operate in the national capital by asking the Delhi government not to take any coercive action against them till a new policy was formulated. The Delhi government has said that they will come up with a policy on two-wheeler non-transport vehicles by June 30.

The top court was hearing two separate petitions by the AAP government challenging the High Court order that no coercive action should be taken against the bike-taxi aggregators until the final policy was notified.

Last week, the top court had sought a response from the Centre on the pleas of Delhi government.

In a public notice issued earlier this year, the government had warned aggregators like Ola and Rapido that the use of two-wheelers for commercial purposes is in violation of the Motor Vehicles Act, 1988. The first offence could lead to a fine of Rs 5,000 while a second offence could incur a Rs 10,000 fine and imprisonment of up to a year, the transport department said in a public notice.

The driver will also lose their licence for three months under the circumstances.

Rapido has also challenged a show-cause notice issued to it by the city government in that context, saying it is in violation of various fundamental and constitutional rights, and has been passed in violation of the principles of natural justice.

In its petition before the high court, Roppen Transportation Services Private Limited, which runs Rapido, has said the Delhi government order directing it to immediately stop plying non-transport two-wheelers from carrying passengers on hire-and-reward or for commercial purposes was passed without any reason or rationale.