Bombay HC seeks state’s reply on rules for app-based cabs

On Monday, appearing for Uber, advocate Ankit Lohia submitted that his client only acts as a facilitator or agent between drivers and customers and that it addresses complaints of customers through a 24x7 helpline.

Written by Omkar Gokhale
Mumbai | Updated: December 21, 2021 07:10 PM IST

3 min read

The petitioner stated that as she was alone and did not want to arrive late for a work-related meeting, she booked another vehicle and had to pay more than the fare shown for the first vehicle. (File)

The Bombay High Court has directed the Maharashtra government to submit an affidavit on the statutory regime for operation of application-based cabs such as Uber along with the terms and conditions attached to licences issued to cab aggregators as per the Motor Vehicles Act, 1988.

A division bench of Chief Justice Dipankar Datta and Justice Makarand S Karnik was hearing a PIL filed by city-based advocate Savina Crasto, who raised grievances regarding “complex and ineffective” redressal mechanism provided by an app-based cab aggregator.

The PIL sought from the court directions to the app-based cab service provider to comply with “statutory obligations” in “letter and spirit” for “larger public interest” and to resolve customers’ complaints without any “embargo on their length” in a time-bound manner. The petition also sought from the central and state governments to strictly implement the Motor Vehicles Aggregators Guidelines, 2020.

During the previous hearing, the state government had told the High Court that it has framed a policy to regulate cab aggregators on the basis of the Centre’s 2020 guidelines and the said policy was awaiting approval from the state cabinet or council of ministers.

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On Monday, appearing for Uber, advocate Ankit Lohia submitted that his client only acts as a facilitator or agent between drivers and customers and that it addresses complaints of customers through a 24×7 helpline.

After the bench queried about the statutory permission for the cab aggregators, additional government pleader Jyoti Chavan representing the state government said the Maharashtra City Taxi Rules, a regulatory policy, was framed in 2017 and after it was challenged in the High Court, a status quo was ordered by the court.

The bench asked Chavan to take instructions as to whether the report of the four-member committee headed by retired IAS officer B C Khatua to decide fare structure for cab aggregators was submitted by it, awaiting which, the state, in June 2017, had made a statement before HC that no coercive steps would be taken against cab aggregators in light of 2017 Rules.

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“The consequence of such a statement is indeed serious, in as much as, even if an aggregator does not obtain a licence, which is an express requirement of Rule 3 of the 2017 Rules, the state would not be in a position to act against him although the mandate of Section 93 of the Act is that an aggregator has to obtain a licence. The statement made before the coordinate Bench has the effect of stultifying operation of the legislative mandate,” the Bench noted in its order.

The court also asked the respondent cab aggregator to file an affidavit by January 5 indicating whether it has obtained the requisite licence under the provisions of the law, and if obtained, a copy of the same shall be attached with the affidavit.

The HC posted the PIL for further hearing on January 10, 2022.

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