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Bombay Asks Cab Aggregators Like Ola & Uber To Apply For Licenses Under New Motor Vehicle Rules By March 16

Sharmeen Hakim

7 March 2022 10:49 AM GMT

    • Bombay Asks Cab Aggregators Like Ola & Uber To Apply For Licenses Under New Motor Vehicle Rules By March 16

    In a sign of accountability for all cab aggregators in Maharashtra like Uber India and Ola, the Bombay High Court has ordered them to apply for new licences from the State Government by March 16, 2022, based on rules framed by the Central Government under the Motor Vehicles Act 1988.The Central Government's rules - Motor Vehicles Aggregators Guidelines 2020- will be applicable till the...

    In a sign of accountability for all cab aggregators in Maharashtra like Uber India and Ola, the Bombay High Court has ordered them to apply for new licences from the State Government by March 16, 2022, based on rules framed by the Central Government under the Motor Vehicles Act 1988.

    The Central Government's rules - Motor Vehicles Aggregators Guidelines 2020- will be applicable till the State's rules come into effect based on a 2019 amendment to the MV Act.
    "If rejected (application and appeal), such applying aggregator shall not be permitted to carry on further activities in the state of Maharashtra," a division bench led by Chief Justice Dipankar Datta observed.
    After the State issues a notification to that effect, the Regional Transport Authorities have been directed to decide such applications within 15 days.
    Since the 2020 guidelines also refer to an appellate authority, the court ordered that the "State Transport Appellate Tribunal, Maharashtra shall be the appellate authority for purposes of 2020 guidelines".
    The court observed that despite an amendment to the Motor Vehicles Act in 2019, adding a section for aggregators, and Rules framed by the Central Government in 2020, the State allowed aggregators to ply without obtaining any licence.
    "We are keen to observe that despite such amended version of statutory provisions brought into force in 2019 & guidelines framed in 2020, the state govt permitted aggregators to operate in Maharashtra without insisting on compliance of statutory regulations," HC noted.
    The bench passed the order on a PIL filed by advocate Savina Crasto. She cited two personal experiences from November 2020 wherein she tried to write to Uber, and its App had no provision of lodging complaints. Uber India Technology Pvt Ltd and Uber India Systems Pvt Ltd are respondents.
    The state government initially pointed out that the Maharashtra City Taxi Rules framed in 2017 was challenged in the High Court, and the same has been in abeyance after the court ordered a status quo.
    In an affidavit to the HC, the Maharashtra government said that until the new rules formulated by the state - The Maharashtra Regulation of Aggregator Rules, 2021- come into effect, the cab aggregators do not have a free hand and were required to act by the Motor Vehicles Aggregators Guidelines, 2020, put in place by the central government.
    The State said that no application had been received from Uber India to obtain a licence under the Motor Vehicles (MV) Act, 1988.
    Senior Advocate Janak Dwarkadas, appearing for Uber, submitted that the State Government was yet to invite objections and suggestions for draft rules for terms and conditions on which aggregator can apply for license. He told the court that there was no notification by the State on this or a mechanism in place.
    The Chief Justice, however, not pleased with the stand and that the State was yet to take any action in that regard, asked Dwarkadas if aggregators were allowed to not follow the Centre's guidelines? "So long as state does not frame its guidelines, you can apply for license as per central rules. It is absolutely without authority of law. We will stop you from plying," the bench observed.
    The court then asked the aggregators if they had made any query with State government after the amendment was made by the Union Government in 2019. To this, Dwarkadas told the bench that a meeting was called by the State government in March 2021 in which Uber had submitted their suggestions.
    The CJ then asked if they followed Central government guidelines and applied for license and observed that if state refused to formulate rules, then central government rules had to be followed. Dwarkadas told the bench that Uber was not asked to do so either by the State or by the Union government. "Had they told us, we would have gone and applied for license," he submitted.
    The bench, however, observed, "Why should they say, you are in business, you know what the law is."
    However, the bench granted an opportunity to all such aggregators to apply for license as required by the MV Act before the competent authority empowered by state government. It directed the State to issue an appropriate notification by March 9, 2022 empowering regional transport authorities (RTA) all over Maharashtra to be licensing authority for grant of license.
    In it's order the bench observed, "We are concious that making an order restraining the aggregators who have not yet obtained license would operate to prejudice and detriment of passengers who avail of these services provided by such aggregators."
    The HC added, "We allow all aggregators to apply for license by March 16, if any application recieved, earnest endeavour shall be made by considering such applications as earliest as possible but not later than fortnight from date of receipt. In the event concerned aggregator to comply with 2020 guidelines, the issuance of license cannot be delayed."

    Citation: 2022 LiveLaw (Bom) 71

    Click here to read/download the order


    Tags
    Bombay High CourtUberOlaMotor Vehicles Act 1988Motor Vehicles Aggregators Guidelines 2020
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