STA directs Ola, Uber to stop operations in UT

Both the companies have over 4,000 cabs in the city, most of which are registered in Mohali and Panchkula

With app-based cab operators Ola and Uber failing to get licence under the Motor Vehicle Aggregator Guidelines, the state transport authority (STA) has directed the two car rental companies to stop operation in the city with immediate effect.

STA directs Ola, Uber to stop operations in UT (Hindustan Times)

The two companies have applied for the licence, but it was yet to be granted.

STA Secretary Rupesh Kumar said that the applications of both the aggregator companies were under consideration.

According to an email sent to the aggregator companies, the STA stated that their request for the issuance of the licence under the Motor Vehicle Guidelines 2020 was under consideration and thus, directed them to stop operation of vehicles in the UT with immediate effect, failing which legal action would be taken against them as per the MV Act and Rules.

Sources said that the aggregator companies were to pay nearly ₹6 crore as entry and licence fee.

The two car rental companies had a licence to run cabs in the city, which expired on November 4. Both the companies have over 4,000 cabs in the city, most of which are registered in Mohali and Panchkula.

According to sources, STA is not in favour of issuing licences without getting entry tax.

Thousands of people in the city book cabs daily on the mobile app of aggregator companies and use the cabs for various tasks, including commuting to office or traveling.

Taxis registered in Punjab and Haryana have to pay entry tax to enter Chandigarh, but the aggregator companies have not yet deposited it. Because of this, STA has issued reminders and notices several times to these companies.