Delhi govt impounds 18 taxis for overcharging

April 19, 2016 11:33 am | Updated October 18, 2016 03:09 pm IST - New Delhi

A day after it warned app-based cab companies Ola and Uber against charging customers more than State-prescribed fares, 18 vehicles were impounded by the Transport Department here on Tuesday.

A source said action followed complaints registered officially with the Department through calls on its helpline number a day earlier.

"The government is of the view that harassment through overcharging can have serious repercussions for the success of the ongoing odd even scheme hence the swift and exemplary action," said a senior government official.

The Department had issued a notice to Ola and Uber warning them against overcharging customers through surge pricing - a demand and supply mechanism that ups fares automatically at locations with less availability of cabs - described as a quality control measure by the said operators.

Transport Minister Gopal Rai is scheduled to address a press conference over enforcement action taken by the government shortly.

Mr. Rai is expected to announce a mechanism including the creation of a list-based database of cabs allegedly overcharging customers to be shared with cab operators for disciplinary action, as reported by The Hindu today, at the end of the month.

Soon after, both companies issued statements to the effect that they were suspending surge pricing in Delhi till April 30 - the day odd even part II concludes.

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