In a hefty blow to ride sharing popular platforms Ola, Rapido and Uber Bike taxis, the National Capital Transport Department on 20th February, informed to stop these platforms services in Delhi effective promptly. Delhi government banned these taxi services straight away.
The announcement comes weeks after the superior court refused relief to Rapido, which questioned the Bombay High Court’s order instructing the company to stop the taxi services in Maharashtra instantly, as it does not have a valid license to employ bike, taxi or rickshaw facilities.
Now the companies Rapido, Ola and Uber have halted bike taxi services in Maharashtra after many days of legal arguments.
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Let us read why Delhi Government Banned Bike Taxi Services?
The Delhi government informed that operating bike taxis in National Capital without valid license would be taken as an infringement of the Motor Vehicles Act, 1988. The 2019 Amendment cannot operate without a commercial license.
Punitive Actions by the Government
- Any infringement of the decisions will lead to 1st offence penalty of Rs 5,000 under section 192 of the Act.
- 2nd or more wrongdoing will result in penalty of Rs 10,000, confiscating of the vehicle and even locking up.
As per the public notice, the digital platforms are providing taxi facility operations via the name of an app and hence taking the role of an aggregator that stands in non- observance of section 93 of the Act, making them bound to penalties up to one lakh.
“Correspondingly, it is instructed to straight away stop such kind of operations to avoid punitive action”.
