Today in New Delhi, India
Nov 14, 2018-Wednesday
New Delhi
  • Humidity
  • Wind

Govt threatens to issue challans against Ola, Uber CEOs

These two taxi aggregators are banned in Delhi but they continue to ply without licences

delhi Updated: May 10, 2016 15:22 IST
Faizan Haidar
Faizan Haidar
Hindustan Times
app-based cabs,taxi aggregators,ola
The government will request the court to issue summons to the CEOs even if they are based in other countries.(Sonu Mehta /Hindustan Times)

The Delhi government on Tuesday threatened to issue challans against the CEOs of app-based taxi aggregators Ola and Uber if the cabs continued to ply without licence.

The move came two days after an Ola driver was arrested for molesting a foreign national and the Aam Aadmi Party (AAP) blamed the Centre for it.

These two taxi aggregators are banned in Delhi but they continue to ply without licence.

“The matter which is pending in court is related to CNG. But there are several other violations these companies are committing…The senior officials will have to come to court and then they will realise what drivers have to go through because of them,” said a transport department official.

The government will request the court to issue summon to the CEOs even if they are based in other countries. “We had a meeting with companies who have a licence and they have found several irregularities in the companies (Ola and Uber). They should first obtain licence from the government,” he added.

The government is in the process of framing a policy for taxi aggregators so that Ola and Uber can apply for a licence under this category.

“The companies do GPS metering, which is wrong as fare should be calculated by the meter installed in the cab. There have been occasions when GPS calculates extra fare,” said Abhishek Sharma, chief operating officer of taxi aggregator Ridz.

The Delhi government is considering fixing a maximum limit of cabs they can operate but no decision has been taken yet. Several states tried to ban ride-hailing services or have them register as taxi operators but companies continue to claim that they are mere aggregators.

Read: Compliance to norms a must: RBI’s message to Ola, Uber

In Mumbai, the regulations state that licensees should maintain a fleet of 1,000-4,000 taxis, a cap which may restrict the businesses from scaling up.

The Aam Aadmi Party (AAP) had earlier accused the Centre of not reining in app-based taxi services such as Ola and Uber, with party leader Ashutosh taking to Twitter to take on the cab aggregators.

“AAP govt banned OLA/uber but HIGH COURT asked not to take coercive action against them. They are running illegally in Delhi,” he tweeted.

Last March, the AAP government had asked the Centre to block the IP addresses of Ola and Uber so that their mobile apps become dysfunctional. The government also rejected their licence applications.

First Published: May 10, 2016 15:22 IST