Plea claims excess road tax levied on city taxis: HC seeks

The Delhi High Court today sought response of AAP government on a plea by radio cab operator Magic Sewa alleging that road tax being demanded from them was in excess of what was permitted under the law and more than what was being collected from regular taxis.
Justice J R Midha issued notice to Delhi government and sought its reply by September 15 on the plea, also by several driver-owners of city taxis, which has contended that they were being asked to obtain licences in the individual category by misinterpreting Motor Vehicles Act.
Magic Sewa, in its plea, has also alleged that the government was also asking city taxi aggregators to submit bank guarantees of Rs 15 lakh which were in excess of what was permitted under the law.

"The respondent is collecting road tax from the petitioners' city taxis at a rate of Rs 1,980 whereas the rate of road tax specified under Delhi Motor Vehicles Taxation Act, 1962 is only Rs 605. The respondent also requires city taxis to obtain a licence whereas there is no such provision under the law.
"Further, petitioner no.1 was made to furnish a bank guarantee in the sum of Rs 15,00,000 whereas the amount specified under Motor Vehicles Act, 1988 is only Rs 5,000," the petition, filed through advocate Sumit Kumar Modi, said and added that representations to the government have gone unanswered.

The taxi operator has sought directions prohibiting the government from collecting road tax in excess of what is specified under Delhi Motor Vehicles Taxation Act.

The panel was also asked by the court to keep in mind a
draft policy being prepared by the Delhi government for regulating aggregators, give a proper hearing to all stakeholders and file a final report in three months.
Justice Manmohan advised the transport department of the Delhi government, the Union transport ministry and Delhi Police to work together to ensure "seamless flow of data" regarding people applying for licence or permit to drive taxis.

The court was of the view that the incidents of crimes against women in cabs occurred because lack of availability of such data with the taxi operators and aggregators, as the accused in such cases "had a criminal past".
It said that while coming out with any policy, the National Capital Region (NCR) should be treated as one area, instead of treating Delhi separately from neighbouring cities of Uttar Pradesh and Haryana as cab companies are based in these cities and ply between them.
The court was hearing a number of petitions filed by an association of radio taxi operators and Ola.

While the association has alleged that Ola and Uber are operating without any licence, overcharging customers and the government is not doing anything about it, Ola has accused Uber of over-charging and not complying with court orders.