MUMBAI: The Bombay high court on Wednesday asked Maharashtra government to explain how and under what scheme do the Uber, Ola and other private taxi aggregators operate in the city as taxis, with only a ‘tourist permit’.

The HC was hearing a plea that has sought a prohibition on companies like Uber and Ola from operating in the state. Association of Radio Taxis which has Meru, Mega and Tab Cabs in its fold had moved the HC seeking the ban on what it said was “illegal operation’’ by companies like Uber India Systems Pvt Ltd, Uber BV, ANI Technologies and Serendipity Infolabs.

The fresh and comprehensive legal challenge to these companies was on the ground that they were offering their ‘tourist vehicles’ for intra-city taxi service to ordinary commuters, in violation of the Motor Vehicles Act and with no regulation on their fare. The petition said, surge pricing is not permitted in law, yet “their peak hour surge fare was as high as five times the normal fare.’’

Companies like Uber, Ola merely have a Tourist Permit for their taxis under the Motor Vehicle Act, said the association and cannot offer ‘tourist vehicles’ as taxis to ordinary commuters through websites and mobile apps. Such permits are only meant “to promote tourism or transportation of tourists to places of tourist interest’’ it said. By using such vehicles to ferry ordinary commuter amounts to a violation and “misuse’’ of the permit condition and “a criminal offence under section 192A of the Act punishable with fine initially upto Rs 5000 or imprisonment of three months to one year or fine of Rs 5,000 to Rs 10,000 for a subsequent offence.’’

When the matter came up before a bench headed by Justice S C Dharmadhikari, government lawyer Uma Desai said the “government is contemplating formulating a scheme on the issue.’’ The court was annoyed that the state was not ready with its affidavit in reply despite the petition having first come up three weeks ago. Desai sought two weeks to file the reply a draft of which she said has been sent to government for approval. The court gave her just a week and sought details of the scheme in it.

Justice Dharmadhikari said, “These cabs do not halt at taxi stands, there is no permission, they don't comply with your rules. You need to explain all this. When has all this started? You have only increased the number of cars on the roads leading to chaos.’’

“Taxi services within Mumbai can be provided only by taxi owners who possess necessary taxi permit issued by the state Transport authority after checking the antecedent of the driver. Such taxi drivers have a Public Service Vehicle (PSV) badge, their vehicles come fitted with a meter and can charge only regulated fare,’’ the petition said adding, “The four companies have been illegally organising, arranging and enabling tourist transport operators and tourist vehicles for regular commuters.’’

Senior counsel Aspi Chinoy appearing for the Association wanted the court to pass interim order to restrain these private taxi aggregators from operating in the city. He said,“Uber and Ola are in effect and substance running a scheme without having applied for and received the necessary license and hence are clearly violating the provisions of the law.’’

Darius Khambata appearing as counsel for Uber opposed the petition and submitted that the radio taxi operators were in breach of their licence conditions. Ravi Kadam counsel for four Uber taxi drivers who held ‘tourist permits’ argued that there was no prohibition under the MV Act for such vehicles to ply and ferry commuters in the city.

The issue before the court is whether the such cab aggregators are violating any law? The radio taxi association claims they are in breach of various provisions of the MV Act, while companies operating Uber and Ola cabs says there is nothing in the law that prevents them. The court will now hear the matter on September 2.



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