Will Uber exit Maharashtra? SC asks cab aggregator to do THIS by March 6
The SC held that Uber can't be allowed to operate without a licence in Maharashtra and directed the ride-hailing firm to apply for a provisional licence by March 6.
- Feb 13, 2023,
- Updated Feb 13, 2023 8:04 PM IST
The Supreme Court on Monday directed cab-hailing firm Uber to apply for a licence within a period of three weeks to continue its services in Maharashtra. In a detailed order, the top court said that it was of the view that interim order permitting Uber to operate without licence cannot stand as "an aggregator cannot work in absence of licence".
Also Read: Ola and Uber are shutting service in this Indian city from today, here are details
The apex court's order came on a plea filed by Uber against the Bombay High Court's March 2022 order which directed that cab aggregators should comply with Motor Vehicle Aggregator Guidelines (MVA) 2020 issued by the Centre.
The SC held that Uber can't be allowed to operate without a licence in Maharashtra and directed the ride-hailing firm to apply for a provisional licence by March 6.
The top court clarified that till the state of Maharashtra notified or compiled its draft rules, the Central Rules would hold the field. "The first proviso to Section 93(1) stipulates that while issuing license to aggregator, the State government may follow the Central Government Rules. No rules have been notified by the state government," the order stated.
"The central government has formulated guidelines in 2020. In the meantime, the Division Bench of the Bombay High Court, by the impugned order, observed that in view of the statutory mandate of Section 93(1), no person could continue as an aggregator without license. Taking note that the rules are just draft rules, till such time that draft rules are compiled, central rules will hold the field. Any person wishing to be aggregator must follow such rules," the order said.
The SC also asked the state government to expeditiously frame the guidelines for aggregators. "The indecision of state government leads to uncertainty in the business of aggregators, which is best avoided," said a three-judge bench headed by Chief Justice of India D Y Chandrachud. The court directed the state government to decide on Uber's application for a provisional licence by March 20.
In its order, the court said that Uber to apply for a licence within a period of three weeks, on or before March 6, 2023. The firm can submit a representation showing the unworkability of some of the conditions and the state to take a call on the same representation and take a decision so that pending finalisation of rules, a decision is taken regarding grant of licence under MVA, the order said.
In March 2022, the Bombay High Court observed that app-based taxi firms such as Ola and Uber were operating in Maharashtra without valid licences. Calling it an instance of "complete lawlessness", the court directed all such aggregators to apply for valid licences by March 16 if they wish to continue operations.
This direction came on a public interest litigation filed by advocate Savina Crasto highlighting the lack of an effective grievance redressal mechanism for customers using the Uber India app. In her plea, Crasto cited an incident from November 2020 when she booked an Uber ride in the city and was dropped off mid-way and she found that the firm's app had no effective option to lodge complaints.
To regulate such cabs, the Central government came out with Motor Vehicle Aggregator Guidelines in 2020. However, those in the city were operating based on permits issued to them under Maharashtra City Taxi Rules 2017.
(With inputs from PTI)
The Supreme Court on Monday directed cab-hailing firm Uber to apply for a licence within a period of three weeks to continue its services in Maharashtra. In a detailed order, the top court said that it was of the view that interim order permitting Uber to operate without licence cannot stand as "an aggregator cannot work in absence of licence".
Also Read: Ola and Uber are shutting service in this Indian city from today, here are details
The apex court's order came on a plea filed by Uber against the Bombay High Court's March 2022 order which directed that cab aggregators should comply with Motor Vehicle Aggregator Guidelines (MVA) 2020 issued by the Centre.
The SC held that Uber can't be allowed to operate without a licence in Maharashtra and directed the ride-hailing firm to apply for a provisional licence by March 6.
The top court clarified that till the state of Maharashtra notified or compiled its draft rules, the Central Rules would hold the field. "The first proviso to Section 93(1) stipulates that while issuing license to aggregator, the State government may follow the Central Government Rules. No rules have been notified by the state government," the order stated.
"The central government has formulated guidelines in 2020. In the meantime, the Division Bench of the Bombay High Court, by the impugned order, observed that in view of the statutory mandate of Section 93(1), no person could continue as an aggregator without license. Taking note that the rules are just draft rules, till such time that draft rules are compiled, central rules will hold the field. Any person wishing to be aggregator must follow such rules," the order said.
The SC also asked the state government to expeditiously frame the guidelines for aggregators. "The indecision of state government leads to uncertainty in the business of aggregators, which is best avoided," said a three-judge bench headed by Chief Justice of India D Y Chandrachud. The court directed the state government to decide on Uber's application for a provisional licence by March 20.
In its order, the court said that Uber to apply for a licence within a period of three weeks, on or before March 6, 2023. The firm can submit a representation showing the unworkability of some of the conditions and the state to take a call on the same representation and take a decision so that pending finalisation of rules, a decision is taken regarding grant of licence under MVA, the order said.
In March 2022, the Bombay High Court observed that app-based taxi firms such as Ola and Uber were operating in Maharashtra without valid licences. Calling it an instance of "complete lawlessness", the court directed all such aggregators to apply for valid licences by March 16 if they wish to continue operations.
This direction came on a public interest litigation filed by advocate Savina Crasto highlighting the lack of an effective grievance redressal mechanism for customers using the Uber India app. In her plea, Crasto cited an incident from November 2020 when she booked an Uber ride in the city and was dropped off mid-way and she found that the firm's app had no effective option to lodge complaints.
To regulate such cabs, the Central government came out with Motor Vehicle Aggregator Guidelines in 2020. However, those in the city were operating based on permits issued to them under Maharashtra City Taxi Rules 2017.
(With inputs from PTI)