1. Home
  2. India
  3. Ola, Uber operating illegally, can't overcharge:

Ola, Uber operating illegally, can't overcharge: Delhi govt tells HC

New Delhi: The Aam Aadmi Party (AAP) government in Delhi has told the High Court that app based taxi service providers Ola, Uber are operating illegally in the national capital and they can’t overcharge in
India TV News Desk April 24, 2016 8:05 IST
India TV News Desk

New Delhi: The Aam Aadmi Party (AAP) government in Delhi has told the High Court that app based taxi service providers Ola, Uber are operating illegally in the national capital and they can’t overcharge in the name of surge price or peak time charge.

In an affidavit submitted in the HC, the AAP government’s transport department also said that ‘these service providers are not licensed under ‘City Taxi Scheme 2015’ as their applications were rejected by the Transport Department in 2015’.

"The alleged unlicensed aggregators namely Ola and Uber are operating illegally as their applications for license were rejected by the transport department vide order dated June 28, 2015," it said.

"Not only the app based companies are unlicensed but they are also not allowed to charge more than prescribed rates of fare in the shape of surge price or peak time charge and punitive actions are being taken against violators by the enforcement teams of the department and Delhi traffic police is also being requested to stop illegal operations by these app based operators," it added.

The governments response came on a plea filed by Magic Sewa Pvt Ltd which has alleged that certain unlicensed taxi aggregators have been disdainfully violating its notification on fares by charging very low amounts like Rs 5 per km or as high as Rs 38 per km.

It, however, informed the court in its affidavit filed by their counsel Sanjoy Ghose that to "regulate auto rickshaws and taxi services, Government of National Capital Territory of Delhi (GNCTD) under relevant provisions of section 93, 95 and 96 introduced a scheme called City Taxi Scheme 2015 vide notification dated August 26, 2015.

"The said scheme, under clause VII provides that the licensee shall charge fare as prescribed by the transport department from time to time and as such there is no provision under the scheme for charging any kind of Peak Time Charge or Surge Prices," it added.

The affidavit also said that the transport department had issued a helpline number for commuters, which they could use to file complaints against taxi operators for overcharging.

The government told the court that 119 challans had been issued in the last week against taxi drivers for overcharging and “most of these taxis were attached with unlicensed operators.”

The government has further asked Delhi Police and State Transport Department to stop app based cabs from plying on city roads.

The government on April 18 faced the ire of the court when it said they cannot “wash their hands of” overcharging by Uber and Ola, as the “general public was suffering”.

With PTI Inputs