Rapido vs Delhi govt: SC stays permission for 2-wheeler taxi in Delhi

The SC was hearing two pleas filed by the Delhi govt against the Delhi HC order that allowed bike-taxi aggregators, Rapido and Uber, to operate till the final policy was notified by the govt

The Supreme Court on Monday stayed the Delhi High Court order that allowed taxi aggregators Rapido and Uber to continue operations until the Delhi government's finalisation of a policy.

The SC bench was hearing two pleas filed by the Delhi government against the Delhi HC order that allowed bike-taxi aggregators, Rapido and Uber, to operate in the national capital till the final policy was notified by the government on plying of two-wheeler non-transport vehicles.

On June 9 the Supreme Court had sought the Centre’s views on the Delhi government’s plea challenging the Delhi High Court order. 
 

On May 26, the AAP government had challenged in the HC order asking it not to take any coercive action against the bike-taxi aggregators till the final policy was notified.

In the plea filed before the apex court, the Delhi government said that Uber and Rapido were using "non-transport vehicles" including two-wheelers for the purpose of aggregation and ride pooling. This however is not allowed without obtaining permits under the Motor Vehicles Act.

Non transport vehicles are those vehicles which are obtained for personal use. To use them as transport vehicles one needs to obtain permit under the Motor Vehicles Act.

The AAP government further added that the Delhi Motor Vehicle Aggregator Scheme, 2023 has already been drafted is only awaiting approval from the competent authority.

In February, the Delhi Transport Department had issued a public notice to stop bike taxi services immediately till they get a commercial permit.

Roppen Transportation Services Private Limited, which runs Rapido, had filed a petition in the Delhi HC saying that the Delhi government order directing it to immediately stop plying non-transport two-wheelers from carrying passengers on hire-and-reward or for commercial purposes was passed without any reason or rationale.

"MoRTH Guidelines expressly allowed vehicle pooling in non-transport vehicles in furtherance of the central and state governments' objective of reducing traffic congestion and automobile pollution and achieving effective asset utilisation unless the state government prohibits it," the plea said.

Rapido had argued that the city government's conduct was not aligned with the intent and object of the Centre regarding the issuance of licences to aggregators under the Motor Vehicles Act, read with the Motor Vehicle Aggregator Guidelines, 2020 (MoRTH Guidelines).

Rapido also challenged a show-cause notice issued to it by the Delhi government calling it a violation of various fundamental and constitutional rights.