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Chandigarh STA failed to recover ₹4.23-cr entry fee from Ola, Uber: CAG

As per an audit, of the total unrecovered amount, 3.84 crore pertains to the quarterly paid entry fee, while 39 lakh is the licence fee

Published on: Mar 14, 2023, 01:31:54 IST
By , Chandigarh
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The Chandigarh State Transport Authority (STA) failed to recover entry and licence fees worth 4.23 crore from taxi aggregators Ola and Uber between 2017-21, the Comptroller and Auditor General (CAG) of India has informed the UT administration.

Uber and Ola were granted aggregator licence to operate taxi services in Chandigarh under UT’s On-Demand Transportation Technology Aggregators Rules, 2017. (HT Photo)
Uber and Ola were granted aggregator licence to operate taxi services in Chandigarh under UT’s On-Demand Transportation Technology Aggregators Rules, 2017. (HT Photo)

As per an audit, of the total unrecovered amount, 3.84 crore pertains to the quarterly paid entry fee, while 39 lakh is the licence fee.

Uber and Ola were granted aggregator licence to operate taxi services in Chandigarh under UT’s On-Demand Transportation Technology Aggregators Rules, 2017.

As provided under Rule 6 (2), the companies are liable to pay 1,000 fee per quarter per vehicle in respect of vehicles registered in Punjab and Haryana, and carrying all-India tourist permit. Besides, for every 500 vehicles enlisted as taxis, a licence fee of 5 lakh has to be paid, and 1 lakh for every additional 100 vehicles.

The audit report detailed that 459 Uber cabs registered in Chandigarh, and 1,541 in Punjab and Haryana plied in the city. From Ola, 215 are registered in Chandigarh, and 4,785 in Punjab and Haryana.

But Uber had deposited licence fee for only 500 cabs, while Ola had paid the fee for only 2,600 cabs, resulting in a short realisation of 39 lakh.

Sanjay Goyal, director general of audit (central), said, “The failure of the Chandigarh STA to exercise basic checks like inspection of records maintained by the licensees, and details of trips and taxis under licensees’ control, resulted in the short realisation of entry and licence fees worth 4.23 crore. Lack of prompt action by the transport department is resulting in continuous loss to the exchequer.”

Meanwhile, a senior STA official said show-cause notices had already been served to Uber and Ola to recover the unpaid fees.

  • Hillary Victor
    ABOUT THE AUTHOR
    Hillary Victor

    Hillary Victor is a Special Correspondent at Chandigarh. He covers Chandigarh administration, municipal corporation and all political parties.