App-based cab providers heave sigh of relief

In a significant ruling, the High Court on Wednesday suggested the State Government to do away with the ban on app-based cab service providers as they already have All India Permits (AIP) and do not need separate approval from the States. Further, it said the companies shall not be blamed for illegal acts of some cab drivers. 

The HC also told app-based taxi service provider -- Ola cabs -- that it was inclined to allow only CNG-based cabs to provide point-to-point service in the national Capital“If AIP was given to wrong person, he (OlA) is not to be blamed. You can’t put burden on him (OlA) if AIP was given to a criminal. The cross has to be borne by police and Government,” Justice Manmohan said, and added, “But CNG requirement has to be complied with.”

“If it is point-to-point in Delhi, the cab has to run on CNG. I am very clear about it. Your competitors run on CNG, so how can you run on dieselIJ Run on CNG or not at all,” the judge said, adding that such service providers should not be banned as their technology has been working world over, they are well-recognised and a “boon for consumers.” The court further asked the Government to hear their fresh plea and allow them to ply.

While appreciating app-based cabs services’ benefits, like presence of GPS for tracking purposes, reduction in number of private vehicles due to faster and cheaper availability of such taxis and their employment potential, the court said vehicles plying under this technology have to run on CNG.

“Prima facie I am not going to allow diesel vehicles to run in Delhi through this methodology (of app-based cab service). You see pollution levels are on rise in the city,” it said.

The court was hearing a plea of ANI Technologies Pvt ltd, which provides service under OlA brand, that it is not amenable to the Delhi Government’s recently modified Radio Taxi Scheme as cabs under it already have AIPs. The company, which claims to be a taxi aggregator, has said since cabs under it have AIPs, they do not need to get additional permission to ply in Delhi.

The court, however, said that policy of the Government was not keeping pace with change in technology and asked it to show such companies fell under the scheme and listed the matter for further hearing on July 27. “You (Government) have not taken web-based taxi services into account,” it said and added, “Don’t shut them out because you can’t deal with it (technology).”

It, however, also said that all public service vehicles running in the capital have to run on CNG. The court had said that since it had set aside the Delhi Government’s June 3 order, by which application for licence of two other app-based taxi services — Apra Cabs India Pvt ltd and Serendipity Infolabs Pvt ltd (Taxi for Sure) — were rejected, Uber India Technology Pvt ltd was “entitled” to a similar relief.

The court had also told the Delhi Transport Department to impose any condition on Uber, in accordance with the law. The Government had cancelled the licence application of Uber for not complying with the provisions of the recently amended Radio Taxi Scheme of 2006.The amendment was introduced after some app-based cab companies were banned in the capital following an Uber cab driver allegedly raping a finance executive in December last year.  The modified scheme imposes various mandatory requirements including having prefixed calibrated meters, a GPS device and running on CNG, on the companies for grant of licence.