Why renting a car may become tougher in Delhi
The Delhi transport department has cancelled the licence of popular car-rental service Zoomcar.
3 min read
Firm is accused of operating private vehicles for commercial purposes, in violation of Rent a Cab scheme, 1989. (Express File Photo)The Delhi transport department has recently cancelled the licence of Zoomcar – a cab-renting platform popular among Delhi residents for outstation travels, including the hills — for operating private vehicles for commercial purposes, in violation of Rent a Cab scheme, 1989.
According to officials, Zoomcar India Private Limited was running a scheme as part of which it was aiding transactions between private car owners and consumers in violation of rules, which require cab-renting companies to maintain at least 50 cabs of their own.
According to officials, the department received a complaint earlier this year regarding the alleged violations of rules. In May, the department issued a show cause notice to the company and asked it to explain and furnish its reply within a period of 10 days. However, the company did not reply to the notice.
According to the document, a copy of which is with The Indian Express, “In a violations to the Rental Cab Services scheme, M/s Zoomcar India Pvt Ltd adopted a scheme known as Zoomcar Host Services, which provides support for the transaction of private car between the hosts and lessees i.e, an agreement between the vehicle owner and the consumer, and conveniently kept itself out of agreement…”
It further stated: “…Whereas, Zoomcar itself is controlling the entire transactions from end to end between the private car owner wishing to rent out his car and a consumer looking to hire such a vehicle, and is actively facilitating the same between the vehicle owner and the lessee.”
The order, undersigned by the special commissioner, transport, Shahzad Alam also stated that the said act of Zoomcar is a “sheer violation of sub clause (vii) of clause 5 of Rent a Cab Scheme 1989, which stipulate that the applicant maintains not less than 50 Motor Cabs of which 50% are air conditioned and duly covered by permit issued under the MV Act… under which comprehensive insurance and fitness certificate is mandatory under the provisions of the same act…”
Citing several other sections of MV Act, the transport department further said, “The private cars registered for private use are restricted to operate under the Rent a Cab Scheme…and thus M/s Zoomcar India Pvt. Ltd…inviting private registered car owner to have an agreement with the customers directly… is tantamount to committing violations of several sub clauses and sections of MV Act, and also sections of Delhi Motor Vehicle Taxation Act, 1962.”
On the company not responding to the show cause notice, Alam said in his order: “This shows the licence holder did not intend to submit any reply in his defence and indirectly accepted the allegation as alleged in the notice. Thus, action is invited.”
Officials said that keeping in view all the facts, the transport department has reached to the conclusion that the licence holder has committed a “grave misconduct”. Thus, the department has decided to cancel the licence issued to Zoomcar with immediate effect, they added.
Further, Zoomcar has also been directed to surrender its original licence with immediate effect. Officials said that Zoomcar was first issued the licence to operate in Delhi on November 22, 2014 with the validity up to November 21, 2019. Subsequently, the licence was renewed till November, 2024.
Zoomcar India Private Limited refused to comment on the matter.
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