Ola, Uber are plying on tourist permit, how? asks Bombay High Court

The Bombay High Court’s SC Dharmadhikari and BP Colabawalla JJ today questioned the state government on the policy governing app-based companies like Uber and Ola..The bench sought to know the policy under which these taxi services are being allowed to ply on city roads..The petition filed by Association of Radio Taxis contends that companies such as Uber and Ola were using cars with tourist permits for intra-city travel. This is in breach of permit conditions, as Sec 88(9) of the Motor Vehicles Act states that any State Transport Authority may, for the purpose of promoting tourism, grant permits in respect of tourist vehicles. Hence, they cannot be used as taxis or cabs..Arguing for the petitioners, Senior counsel Aspi Chinoy said.“Uber and Ola are in effect and substance running a scheme without having applied for and received the necessary license and hence are clearly violating the provisions of the law”.Ola and Uber have already faced litigation in Delhi High Court, and the Karnataka High Court..In the previous hearing, Chinoy had argued that unlike Uber and Ola cabs, radio taxis were bound by certain rules and regulations such as using CNG, the maximum fare chargeable etc. The petition also states that cab and taxi drivers have to have Public Service Vehicle (PSV) badges issued by the State Transport Authority after verifying the antecedents of the driver..After the government pleader informed the bench that the state is contemplating the formulation of a scheme for this, the bench observed.“These cabs do not have the requisite permission, they don’t comply with the rules. There is no system in place to keep a check on all of this, the state needs to explain. .You have only increased the number of cars on the roads..If the state formulates a scheme submit it along with the affidavit.”.The bench has also asked the state to explain whether the surcharge levied by Ola and Uber is permissible under existing laws. The case will now be heard on September 2 this year.