HC wants policy on app-based cabs

The Bombay High Court has directed the Maharashtra government to file an affidavit spelling out the policy under which it has allowed private cab companies like Ola and Uber to ply across the state.

The directions came in response to a petition filed by the Association of Radio Taxis, which has sought a ban on cab companies like Ola and Uber.

It must be noted that cab companies like Meru and Tab Cab, which operate on electronic meter, are also petitioners in the case. They have contended that Ola and Uber cabs are not running on electronic meters and instead are app-based. The petitioners have alleged that there is no regulation of the fare due to the app-based functioning.

According to the petition, any taxi/cab service can be provided to the public only if the taxi/cab owner possesses the contract permit awarded by the government under the provision of Motor Vehicles (MV) Act.

The petition also drew the bench’s attention to the provision under the MV Act, which makes it mandatory for the cab drivers to have Public Service Vehicle badges, which are issued by the State Transport Authority after verifying details of the driver. The petitioners also pointed out that the MV Act compels a cab to fit an electronic meter so that it can function as per the specified and regulated fares.

“The fare has to be as per the one fixed by the Roads and Transport Authority and no other charge like surge pricing can be recovered from the passenger by the cabs,” the petition states.

Senior counsel Aspi Chinoy, appearing for the petitioners, informed the bench that Ola and Uber cabs operate on the basis of tourism permits.

He also informed the bench that section 88 (9) of the MV Act provides that tourist vehicles cannot be used as cabs or taxis since they are granted permits for promotion of tourism. After hearing the petition, the division bench headed by Justice Satyaranjan Dharmadhikari asked the government if it has formulated any policy to monitor the functioning of these cabs. Uma Palsuledesai, the counsel appearing for the government, informed the bench that it (government) has proposed a policy pertaining to this issue. Pulling up the government, the bench said,“Apart from increasing the number of cars on the roads and congesting the arteries, you have done nothing. These cabs are not complying with any rules and are plying on the roads without the government’s permission. There is no system to keep tabs on such cab services.” “We want to know from you (government) about the policy under which such cabs are allowed to ply,” the bench directed. Directing the government to file an affidavit, the bench said,“If the proposed policy is formulated, submit that too along with your affidavit.” The matter will be next heard on September 2.