Two fleet taxi companies - Mega Cabs and Arya Cabs -which have failed to bring in the stipulated number of 500 cabs on to the roads, stand to lose their temporary licences.
The action by the State Transport Authority (STA), headed by transport secretary SK Sharma, comes after repeated complaints against these companies by taxi unions.
If the state transport authority decides to take action against the fleet taxi companies for their inability to adhere to the scheme guidelines, the number of air-conditioned luxury cabs on the city's streets could further reduce by 200 to 300.
As per Regional Transport Office (RTO) records, the Mega Cabs company, which launched its air-conditioned taxi service in 2007 has around 240 registered taxis, while Arya cabs, launched in 2011, has just 48 cabs. The STA will discuss the issue of fleet taxi companies that have not met the guidelines in its meeting scheduled next week.
It had already informed Arya Cabs to stop operations two months ago, an RTO official said. He said even the authorities had told them to take action against Arya Cabs, if they were found doing business on city roads.
In order to improve the taxi services in the city, the state government had launched the fleet taxi scheme in 2006. At the time, seven companies were part of the scheme. Today, only three fleet taxi companies still operate.