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Business News/ News / India/  Ola, Rapido, Uber bike taxi services are banned in Delhi by government. 5 points
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Ola, Rapido, Uber bike taxi services are banned in Delhi by government. 5 points

Delhi government banned Ola, Rapido and Uber bikes citing violations of Motor Vehicles Act, 1988

Rapido 'captains' being flagged off.Premium
Rapido 'captains' being flagged off.

Delhi government in a decision has decided to ban bike taxi services provided by Ola,Uber and Rapido in the national capital stating that it was a violation of the Motor Vehicles Act, 1988, which would make aggregators liable for a fine of 1 lakh. 

Here is why the government decided to ban bike taxi services in Delhi:

The Delhi Transport Department has told commercial bike taxi services (Two Wheelers Commercial Services) like Ola, Uber, Rapido that their drivers are using private bikes.

The Delhi government has said that carrying passengers on a hire or commercial basis in private bikes Delhi would be considered a violation of the Motor Vehicles Act, 1988.

The Transport Department of the Delhi Government has issued a notice in this regard. According to the notice for the first offense, a fine of 5,000, while for the second offense, a fine of 10,000 and imprisonment of up to 1 year can be imposed. Also, under these circumstances, the driver can also lose his license for 3 months.

The government said in the notice that some app-based companies are violating the Motor Vehicles Act, 1988.

This company is presenting itself as an aggregator. If this happens on a private bike, then they will have to pay a heavy fine of 1 lakh. It may be noted that, with the amendments made in the Motor Vehicles Act in 2019, it was made clear that aggregators cannot operate without a valid license.

Earlier this month, the Supreme Court refused to grant relief to bike taxi aggregator Rapido against the Maharashtra government's refusal to grant licence to it.It had noted that amendments made to the Motor Vehicles Act in 2019 made it clear that aggregators cannot operate without a valid licence. A bench of Chief Justice D Y Chandrachud and Justices P S Narasimha and J B Pardiwala noted that Pune's Regional Transport Office had rejected its plea for licence on December 21.

*With agency inputs

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Published: 21 Feb 2023, 06:46 AM IST
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