New Delhi: In a major relief to Ola, Uber, and Rapido, the Delhi High Court on Friday put a stay on the public notice and show cause notice issued by the city Transport Department, halting the ride-sharing platforms.
A division bench of Justices Suresh Kumar Kait and Neena Bansal Krishna directed the Transport Department to refrain from taking any coercive measures against Rapido and other ride-sharing platforms until a comprehensive policy is formulated.
In February, the app-based aggregators were prevented from plying bike taxis on the road without commercial permits. The public notice by the Transport Department said that the companies defying the orders 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 directed them to pause operations immediately to avoid prosecution and penalties.
Following the High Court decision, Uber has expressed its gratitude towards the court's order providing protection to the company against coercive actions regarding its bike taxi service in the capital city.
"We welcome the High Court's order to give Uber protection from coercive action on bike taxis in Delhi. This will bring relief to drivers on our platform whose livelihoods had been impacted by the ban as also to the hundreds and thousands of riders who choose to ride on Moto for affordability and last mile connectivity. We are committed to serving the city and being the platform of choice for riders and drivers alike," said Uber in a statement.
The Delhi government has already issued a draft aggregator policy recognising bike taxi operators as long as they ply electric vehicles. The policy, which is yet to be finalised, has been put out for stakeholder consultations.
Despite the relief in Delhi, bike taxi operators still face hurdles in Mumbai, where regional transport offices (RTOs) have been cracking down on two-wheeler aggregators since February.