HC stays Delhi govt’s notice halting Rapido, Uber & other aggregators’ services

In a big relief to cab aggregators like Uber and Rapido, the Delhi High Court on Friday stayed the public notice and show cause notice issued by the Delhi Transport Department against continuing their operations.

A division bench comprising Justices Suresh Kumar Kait and Neena Bansal Krishna also directed the Transport Department to not take any coercive steps against Rapido and others till such time policy is framed.

“The Hon’ble High Court has ordered that no coercive steps shall be taken by the concerned authorities in the Delhi NCT against Rapido bike taxi and its riders until requisite regulation to regulate operation of bike taxis is notified by the government,” said Abhishek Awasthi, Senior Partner, AZB & Partners representing Rapido.

“This is a very welcome decision for Rapido and its captains, and will prevent undue hardships that the captains currently face due to the challans issued by the transport department,” he added.

Bike taxi operators such as Ola, Uber and Rapido in February this year had been warned not to ply on Delhi roads as it violates motor vehicle laws.

These companies will be fined up to Rs 1 lakh, as the use of bikes for commercial purposes violated the Motor Vehicles Act, 1988, the transport department said in a public notice.

The state government had directed app-based bike taxi companies to stop their services immediately to avoid prosecution and penalties.Ashish Kundra, principal secretary in the Delhi government’s department of transport, told ET that the use of bike taxis has proliferated in the capital and that the government would enforce the rule by asking shadow transport enforcement officers to book rides anonymously and penalise the driver and the company for plying.

“Police conduct background checks for auto and cab drivers who drive yellow plate vehicles, which ensures safety, especially for women,” he said. “This is not the case with bike taxis as it does not come under any regulation.”

(With inputs from Indu Bhan of ET Bureau)

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