Bike taxis cannot operate in capital until Delhi govt frames a policy: SC

The Supreme Court on Monday said bike taxis of Rapido, Uber, Ola, among others, cannot operate in Delhi until the government frames a policy.

A vacation bench of Justice Aniruddha Bose and Justice Rajesh Bindal stayed the Delhi High Court’s order that allowed bike-taxi aggregators to run in Delhi till the government frames a policy. The Bench also granted liberty to bike-taxi aggregators to request an urgent hearing of their pleas by the High Court but only after the state government makes a policy.

The court observed that the Delhi government was in the process of forming a policy for granting licenses to bike taxi aggregators, so a complete stay by the HC on the notification that prohibited their operation was ‘unwarranted’. 

“In these facts and circumstances, a wholesale stay of the notification was unwarranted. The high court is directed to hear the matter expeditiously, and parties are given the liberty to file an early hearing application. Present proceedings disposed of,” the court said.

The Bench also recorded the Delhi government counsel’s submission that the final policy regarding the aggregators will be notified before July-end.

The apex court was hearing two separate petitions by the AAP government challenging the high court order of May 26. Last month, the Delhi HC said no coercive action can be taken against bike-taxi aggregators such as Rapido and Uber and their users till proper regulations were framed by the state government.

The HC had said, “The counsel for the petitioners (Rapido) submits that policy is under active consideration. Accordingly, we hereby stay the notice and make it clear that the stay shall operate till the final policy is notified. However, once the final policy is notified, if the petitioners are still aggrieved, they are at liberty to take steps before the appropriate forum.”

Earlier this year, the Delhi transport department had said bike taxis are not allowed in the capital as app-based aggregators such as Rapido and Uber were operating bikes-taxis in violation of the Motor Vehicles Act, read with the Motor Vehicle Aggregator Guidelines, 2020 (MoRTH Guidelines). The department also warned that such violations would make aggregators liable for a fine of up to Rs 1 lakh.