SC stays operation of bike-taxi aggregators Rapido, Uber in Delhi till policy comes

New Delhi: The Supreme Court on Monday put on hold the Delhi High Court order staying a notice of city government to bike-taxi aggregators Rapido and Uber and allowing them to operate without aggregator licenses till the final policy has been notified.

A vacation bench of Justices Aniruddha Bose and Rajesh Bindal stayed the operations of such bike taxis until the Delhi government notifies guidelines governing them. The bench said that given the fact that the Delhi government was in the process of formulating a policy for granting licenses to bike taxi aggregators, a complete stay by the High Court on the notification that prohibited their operation was unwarranted.

It asked the High Court to hear the pending case where bike-taxi aggregators have challenged the notification, expeditiously. It also gave parties the liberty to file early hearing applications before the High Court.

“In these facts and circumstances, a wholesale stay of the notification was unwarranted. We stay both the impugned orders. High Court directed to hear the matter expeditiously, and parties were given the liberty to file an early hearing application. Present proceedings disposed of,” the bench stated in its order.

The Delhi government submitted before the apex court that the aggregators were operating two-wheelers without proper licenses or permits, as required under Section 93 of the Motor Vehicles Act and non-transport two-wheelers should not be used as taxis without a policy in place.

It further apprised the top court that the policy for licensing would be in place and the licensing regime would become operational by July 31, 2023.

Delhi government has challenged in the apex court the High Court May 26 interim order staying the Delhi Transport Department’s notification to stop plying bike-taxi aggregator through ride-sharing platforms in the national capital.

Delhi government has sought a hearing saying that in view of the impugned interim order of the High Court, the respondents 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.

The government has said that the Delhi Motor Vehicle Aggregator Scheme, 2023 has already been prepared by the State and the same is now pending the approval of the Competent Authority.

“The respondents are required to get themselves registered and apply for permits after complying with the conditions laid down therein upon its notification and only thereafter, the Respondents can be allowed to continue their business operations in accordance with law”, the state government said.

Plying the bike taxis by Rapido and Uber cannot, amongst other reasons, be permitted without complying with conditions like police verification, obligations of installing GPS devices, panic buttons etc., to ensure road safety and the safety of the passengers, the State government said. (ANI)