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Don't take action till panel formulates policy on cabs: HC

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Press Trust of India New Delhi
Delhi High Court today directed the AAP government not to take any action against app-based cab providers like Uber and Ola till a special panel, formulating a uniform policy to regulate such companies, comes out with its report.

"Please stay out ... Till the matter is pending. Trust them. They (cab players) are following your directions," Justice Manmohan told the lawyer appearing for the government.

Delhi government's counsel told the court that transport department officials have been orally instructed not to take action against these cabs till the matter is pending.

The court was hearing Uber's application seeking quashing of the challans of its cabs and restraining the government from taking any coercive step against it.
 

When the court was informed that these companies have not been given protection against government action, the bench said, "He (government's counsel) is saying no action will be taken till the matter is pending."

The government had earlier told the court that these cab firms cannot get immunity for violating the law merely because a special panel was working on formulating a uniform policy.

However, Uber had contended that several of their cabs were challaned or confiscated merely because they did not have calibrated meters and alleged that the action was being taken by the government at the behest of some of its competitors.

The court had told Delhi government lawyers that since "everyone is cooperating" and a panel was working on devising a policy, the transport department be asked to wait till the committee comes out with its report.

It, however, had said that if there was any violation of the undertaking given by the app-based cab aggregators on surge-pricing, then action has to be taken.

The court on August 11 had set August 22 as the deadline after which taxi aggregators as well as cab operators cannot charge passengers more than the government-fixed rates.

It had also directed a special committee, set up by the Centre to examine all issues relating to existing permits given to taxis and cab aggregators, to also include a senior official each from Ministry of Information Technology, Central Pollution Control Board and Delhi Traffic Police apart from obtaining advise of a transport expert from Niti Aayog.
Noticing that the law has not kept pace with changing

technology, the court had set up an expert panel to formulate a uniform policy to regulate such companies.

Some of the 15 key recommendations by the panel include states facilitating unhindered grant of permits for city taxis and All India Tourist Permit (AITP) without any restriction on numbers, online conversion of compliant personal vehicles to commercial taxis on payment of requisite charges to facilitate use of idle assets, and no regulation on tariff of deluxe taxis which should be determined by market dynamics.

The committee had also suggested that the maximum tariff may be permitted up to three times the minimum tariff and to enhance the availability of taxis at night, the maximum tariff may be allowed up to four times that of minimum tariff between midnight and 5 AM.

It had also said that city taxis may continue as street hailing cabs and may also be allowed to ply on the aggregator platform, like Ola or Uber, if they so desire.

The panel had further suggested that AITP taxis may be allowed to operate for all purposes except as street hailing cabs and such vehicles would have to comply with the fuel specified for a city while operating for aggregators for intra city transport on long-term hiring/leasing.

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First Published: Sep 06 2016 | 4:22 PM IST

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