Ranchi

RTA pulls brakes as Ola hits licence hurdle

Sumedha Chaudhury

The State Transport Authority issued notice to Manager of OlA Cab Service in Ranchi on Friday asking the popular taxi operator to immediately withdraw its services from the State due to non-compliance of the transport rules. The authority has also asked the District Transport Officers and the Motor Vehicle officers to ensure that the OlA cabs do run on the roads till the company gets a valid license.

“I have told them clearly to take license from the State Transport Authority under the provisions of Rent a Cab- 1989 otherwise they will not be allowed to ply on the roads of the State. The DTO has been asked not to allow the cab to run on the roads without having license from the STA,” said RTA Secretary RK Barwar.

Sources maintained as per law, a cab service agency having 50 or less vehicles, can operate on the roads without licence. However, there are around 150 OlA cars plying on the road. Sources in the transport department claimed that the service provider has to pay a sum of Rs5,000 to avail the licence. But, if they get the licence the Transport Department will generate revenue of Rs2,200 from each cab, claimed sources.

Officials of OlA, Ranchi declined to comment over the matter. However, a senior manger rank official engaged in OlA operations in Delhi said that the ban on the cab services was due to incoherence in the existing law about integration of web-based services with other traditional services. “OlA is a platform it doesn’t run like a travel agency. The vehicles are already registered under commercial category. The vehicle owners are individually paying road tax at commercial rates. Actually there is not much clarity over the laws meant to regulate these App based services and the Government is still working over it,’ the official said.

“The Delhi High Court has on Friday put a stay on the ban on OlA and Taxi for Sure calling it invalid and the ban imposed by officials in Ranchi is not going to stay for long,” he added. Meanwhile, the OlA cab services called back its vehicles after the notice on Friday. The call centre bookings were stopped and the mobile app did not work out for a number of denizens.