The Hindu : Cabinet reverts to `one auto' norm

Online edition of India's National Newspaper
Tuesday, Jan 21, 2003

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Cabinet reverts to `one auto' norm

By Our Staff Reporter

NEW DELHI JAN. 20. In a major decision aimed at breaking the backbone of the auto rickshaw cartel of financiers, the Delhi Cabinet today decided to reverse the 1996 Cabinet decision allowing one person to own more than one vehicle. This would help put an end to the blackmail tactics of these cartels that have time and again held the Capital's commuters to ransom.

Announcing this here today, the state Transport Minister, Ajay Maken, said a decision to this effect was taken at the Cabinet meeting, presided over by the Chief Minister, Sheila Dikshit. He said the previous BJP Government had taken a decision in 1996 allowing one person to hold more than one auto rickshaw that had led to the mushrooming of cartels over the past few years. Not only were genuine auto rickshaw drivers deprived of having a source of income, financiers and unscrupulous elements joined hands to corner a major chunk of the 45,000-odd vehicles plying in the Capital. The influence of the cartel was such that it not only blackmailed the previous Governments but also got away with fleecing passengers and blatantly indulging in violations of the law.

But the Chief Minister, when apprised of the situation, decided immediately to reform the entire system that would not only break the nexus of the cartel and financiers but also provide self-employment opportunities to youths and those who owned auto rickshaws in the past but could not operate them due to the influence of the cartel and increased input costs. Mr. Maken said this historic decision would not only put an end to the wayward ways of the auto rickshaw cartel but also help genuine individuals to ply these vehicles without having to pay heavy charges or interest to financiers.

As a result of the decision, the 5,000 new auto rickshaws, allowed for registration by the Supreme Court, would hit the Capital's roads shortly. In another decision, the Cabinet also made it clear that only badge holders registered with the Transport Department would be issued permits for new vehicles.

Ironically, during the past 12 years, the Department had issued no badges indicating lack of will to take on those harassing the public. In addition, Mr. Maken said to prevent individual badge holders from falling into the trap of financiers and paying high rates of interest, it had been decided that the Delhi Financial Corporation, the SC/ST Financial Corporation Limited would provide finance to these individual permit holders at soft interest rates.

Other financial institutions and banks are also being approached to provide such soft loans in future. Mr. Maken made it clear that no auto rickshaw would be registered in future if the individual is not a badge holder with the Transport Department. He said it was proposed that by April 30, nearly one lakh badges would be prepared by the Department for issuance from time to time.

The reversal of the decision disallowing individuals or firms from possessing more than one auto rickshaw is expected to see a dip in black marketing rates of the vehicles and possibly in the interest rates at which private financiers were extending loans to individuals.

Mr. Maken said with more individuals plying auto rickshaws in the Capital, the threat of the cartel resorting to strikes every now and then would also be tackled effectively. "It will be the passenger who will be the king. The auto rickshaw owners have no other option but to ply their vehicles in compliance with the law or face the wrath of the authorities and the consumer,'' the Minister announced.

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