The Supreme Court has refused to give relief in the appeal filed by the bike taxi aggregator company, Rapido against the Maharashtra government for granting two-wheeler bike taxi aggregator license to the company.
A bench of Chief Justice of India (CJI) DY Chandrachud , Justice PS Narasimha and Justice JB Pardiwala have clarified that as per the amendments made to the Motor Vehicles Act in 2019 aggregators cannot operate without a valid licence.
The Court talking about Section 93 said it was substituted by the amending statute prior to which it was titled agent or canvassor of services.
As per the court, post the effect of amended provision no person can engage himself as an aggregator without a license from the prescribed State government.
The Court observed that the Pune RTO had rejected the plea for licence in December 2022.
The Bombay High Court had found that there was absence of policy as regards licensing of bike taxis in the State.
A committee was constituted by the state comprising senior IAS and government officers for looking after the State had come up with a notification on January 19 prohibiting the use of non-transport vehicles for the purpose of aggregation.
The Supreme Court said that the correctness of Pune RTO order stands subsumed by wider decision of State to have a committee examine the issue.
The Apex court refused to grant relief to Rapido but granted the company liberty to move the Bombay High Court under Article 226 to challenge January 19 notification issued by the State of Maharashtra.
The court added that the High Court shall consider such challenge un-influenced by the earlier order.
The State government on December 29 said that there is no State policy on licensing of bike taxies and that there is no fare structure policy for bike taxies. and thus it has refused to grant a license to Rapido.
Rapido then took the matter to the Bombay High Court challenging the State government’s refusal to grant the two-wheeler bike taxi aggregator a license.
Initially the High Court took a favourable view of Rapido’s predicament and asked the State to frame a policy for licensing such aggregators. It also asked the State to consider the benefits of having two-wheeler transport and opined that there is nothing to stop the State from framing a policy.
The Court when told that Rapido was continuing to ply its taxis without a license in Maharashtra, it had warned the company of adverse action if the same was not halted.
Rapido then, gave an undertaking before the High Court for suspending all its services in Maharashtra till January 20.
Rapido later moved before the Supreme Court seeking a relaxation on the interim ban so imposed on plying its services in Maharashtra.