HC imposes ₹5,000 fine

The Delhi government was fined ₹5,000 by the Delhi High Court for failing to respond to a notice issued by the court on a radio cab operator’s plea alleging levy of excess road tax.

Cab operator Magic Sewa has claimed in its plea that road tax being demanded from it was in excess of what was permitted under the law and more than what was being collected from regular taxis.

Affidavit in two weeks

While imposing the cost, Justice A. K. Chawla directed the Delhi government’s Transport Department to file its affidavit on the plea within two weeks.

The petitioners, including owner-drivers of several city cabs, have contended they were being asked to obtain licences under the individual category by misinterpreting the Motor Vehicles Act.

The court has now fixed the matter for hearing on January 4 next year.

Magic Sewa, in its petition, also alleged that the government was asking city taxi aggregators to submit bank guarantees of ₹15 lakh, which were in excess of what was permitted. “The respondent is collecting road tax from the petitioners’ city taxis at a rate of ₹1,980, whereas the rate of road tax specified under Delhi Motor Vehicles Taxation Act, 1962, is just ₹605. The respondent also requires city taxis to obtain a licence whereas there is no such provision under the law. “Further, petitioner no.1 was made to furnish a bank guarantee of ₹15 lakh, whereas the amount specified under Motor Vehicles Act, 1988, is only ₹5,000,” the petition, filed in 2016, said.