Bike-Taxis : Supreme Court Gives Delhi Govt Time Till Sep 30 To Notify 'Motor Vehicle Aggregator & Delivery Service Provider Scheme'

The Supreme Court on Monday extended the time granted to the Delhi Government to finalise the Delhi Motor Vehicle Aggregator and Delivery Service Provider Scheme, 2023 for regulation of two wheeler aggregators till September 30th.

The application filed by the Delhi Government for extension of time was allowed by a division bench of Justice Aniruddha Bose and Justice Bela M. Trivedi.

"There was an emphatic stand by the Delhi Government last time.' Justice Bose said referring to the Delhi Government's submission that the policy would be notified by 31st July. 

"In real terms is the prohibition notification continuing? You try to book a two wheeler on your mobile.." Justice Bose said to the Counsel for the Delhi Government. "It is not operative, as per my instructions" she responded.

The Court was previously informed that the Delhi Government has drafted the Delhi Motor Vehicle Aggregator and Delivery Service Provider Scheme, 2023 and public notices have been issued for giving objections to the policy. The last date for receiving objections was June 24. The Court was informed that the Delhi Government aimed to notify the policy by 31st July, 2023.

The Top Court noted that despite being served, Rapido (Roppen Transportation Services Private Limited) was not present in Court today. Among the respondents, only Uber was present today and they did not object to the extension of time. 

"We do not think it is necessary to wait for Roppen Transportation Services Private Limited as they have chosen not to appear inspite of service. The present application is allowed and extension of time for issuing notification on Delhi Motor Vehicle Aggregator and Delivery Service Provider Scheme, 2023 is extended till 30th September 2023." the Apex Court said in its order. 

"Why the delay?" Justice Bose asked the government. "A robust policy is underway, it is taking some time." the Counsel for Delhi Government said to which Justice Bose said "What policy? they are running anyway.." 

On June 12th, the Supreme Court had stayed the order of the Delhi High Court allowing bike-taxi aggregators, Rapido and Uber, to operate bike-taxis without aggregator licenses in Delhi till the Delhi Government notified its policy for the same.

While staying the interim order passed by the Delhi High Court a vacation Bench comprising Justice Aniruddha Bose and Justice Rajesh Bindal recorded the statement of Senior Advocate, Manish Vashisht on behalf of the Delhi Government that the concerned policy would be in place and the licensing regime would be operational by 31st July, 2023. At the request of the Senior Counsels representing the petitioners, the Bench categorically noted that once the State’s notification was in place it would deal with the applications in a time-bound manner. The Bench also granted liberty to the parties to approach the Delhi High Court seeking early hearing of the main matter.

On 19th February, 2023, the Delhi Government issued a public notice, in essence, prohibiting use of two wheelers by aggregators. As per the Government, the notice was issued as two wheelers were being utilised by the aggregators without proper license or permit. The said public notice was challenged by aggregators like Rapido and Uber before the Delhi High Court invoking its writ jurisdiction. While the matter was pending before the High Court, the Delhi Government issued show cause notice to the aggregators on 21st February 2023 contemplating coercive action. By way of the impugned order, passed by the Delhi High Court on 26th May, 2023, it directed that no coercive action be taken against the bike-taxi aggregator till a final policy has been notified by the Delhi Government.

In the plea before the Apex Court, the Delhi Government had argued that owing to the High Court’s interim order, Uber and Rapido are continuing the use of non-transport vehicles including two-wheelers for the purpose of aggregation and ride pooling, which is impermissible under the Motor Vehicles Act read with the Motor Vehicle Aggregator Guidelines, 2020 without obtaining valid permits. 

Case Title: Government Of NCT Of Delhi v. Roppen Transportation Services Pvt. Ltd. MA 1740/2023 in C.A. No. 4039/2023