Ola, Uber operating illegally, can’t overcharge: AAP govt to Delhi High Court

By: | Published: April 23, 2016 7:00 PM

"Unlicensed" cab aggregators like like Ola and Uber cannot overcharge in the name of 'surge price' or 'peak time charge' and they were operating "illegally" in the national capital, Delhi government alleged today.

ola cabs, odd even rule, aam aadmi party“Unlicensed” cab aggregators like like Ola and Uber cannot overcharge in the name of ‘surge price’ or ‘peak time charge’ and they were operating “illegally” in the national capital, Delhi government alleged today. (Reuters)

“Unlicensed” cab aggregators like like Ola and Uber cannot overcharge in the name of ‘surge price’ or ‘peak time charge’ and they were operating “illegally” in the national capital, Delhi government alleged today.

“The alleged unlicensed aggregators namely Ola and Uber are operating illegally as their applications for license were rejected by the transport department vide order dated June 28, 2015,” AAP government’s transport department said in an affidavit in the Delhi High Court.

“Not only the app based companies are unlicensed but they are also not allowed to charge more than prescribed rates of fare in the shape of ‘surge price’ or ‘peak time charge’ and punitive actions are being taken against violators by the enforcement teams of the department and Delhi traffic police is also being requested to stop illegal operations by these app based operators,” it said.

The government’s response came on a plea filed by Magic Sewa Pvt Ltd which has alleged that certain unlicensed taxi aggregators “have been disdainfully violating” its notification on fares by charging very low amounts like Rs five per km or as high as Rs 38 per km.

It, however, informed the court in its affidavit filed by their counsel Sanjoy Ghose that to “regulate auto rickshaws and taxi services, Government of National Capital Territory of Delhi (GNCTD) under relevant provisions of section 93, 95 and 96 introduced a scheme called ‘City Taxi Scheme 2015’ vide notification dated August 26, 2015.

“The said scheme, under clause VII provides that the licensee shall charge fare as prescribed by the transport department from time to time and as such there is no provision under the scheme for charging any kind of ‘Peak Time Charge’ or ‘Surge Prices’,” it added.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition