The Supreme Court has requested a response from the Indian government on a plea challenging a Delhi High Court order that allowed bike-taxi aggregators Rapido and Uber to operate bike-taxis without aggregator licenses until a final policy regarding them is notified. A Vacation Bench of Justices Aniruddha Bose and Rajesh Bindal heard a special leave petition filed by the Delhi Government, which contested the High Court's order staying the notices issued against Rapido and Uber.
The bench ordered the copy of both petitions to be served upon the Solicitor General to consider the views of the Union of India and scheduled the case for Monday. During the hearing, Senior Advocate Manish Vashisht, representing the Delhi government, argued that the high court's decision to stay the government's notice until the final policy is notified essentially grants the writ petition filed by Rapido. The counsel claimed that the High Court's order was non-speaking and allowed daily violations of the provisions of the Motor Vehicles Act.
In May, the Delhi High Court issued notice to the Delhi government on Rapido's plea and directed that no coercive action be taken against the bike-taxi aggregator until a final policy is notified. In February 2023, the Delhi Transport Department issued a public notice to immediately halt the operation of bike taxi services.
During the hearing, the bench inquired whether the bike taxis were equipped with private number plates. Vashisht replied that aggregators must obtain a license under the Motor Vehicles Rules, and they have not been allowed to operate for commercial purposes. The counsel referred to the definition of motorcycles under Section 2 (27) and the requirement of obtaining a license under Section 93 of the Act.
The bench further asked whether the Delhi government had initiated a licensing regime for the aggregators. Vashisht informed the court that a policy, called the Delhi Motor Vehicle Aggregator Scheme, 2023, has been drafted and public notices have been issued to invite objections. The counsel stated that this process would be completed within a month, with the deadline for submitting objections expiring on June 24.
Uber's representative, Senior Advocate NK Kaul, argued that the insurance cover is provided for the drivers and emphasized that Uber is merely an aggregator. He questioned whether the court should intervene in the interim order and highlighted the importance of pending challenges before the High Court. Kaul stated that Uber and Rapido have been operating as aggregators across the country since 2019 and referred to guidelines issued by the Government of India in 2004, which allowed aggregators to use both two-wheelers and four-wheelers.
In the plea filed before the Supreme Court, the Delhi government contended that due to the High Court's interim order, Uber and Rapido are continuing to use non-transport vehicles, including two-wheelers, for aggregation and ride pooling without valid permits, which is prohibited under the Motor Vehicles Act and the Motor Vehicle Aggregator Guidelines, 2020.
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