No coercive action against cab aggregators, drivers for now: govt.

Don’t insist on police verification of drivers to grant licences to aggregators: High Court

June 02, 2016 12:00 am | Updated September 16, 2016 09:47 am IST - Bengaluru:

No fleecing customers:The government has said that it will take action if cab aggregators employ surge pricing.— File Photo

No fleecing customers:The government has said that it will take action if cab aggregators employ surge pricing.— File Photo

In a temporary relief to cab aggregators and drivers, the State government on Wednesday gave an undertaking to the Karnataka High Court that it will not take coercive action, such as seizure of cabs, based on the recently introduced Karnataka On-Demand Transportation Technology Aggregators Rules, 2016.

However, the government would take action if aggregators employ surge pricing.

Additional Advocate General A.S. Ponnanna told the court that the government will discuss the grievances of cab aggregators about the newly-introduced rules and, if necessary, is open to making necessary changes.

The court directed the government not to insist, as of now, that aggregators submit police verification certificates of all drivers attached to them for processing applications seeking licences for operating through On-Demand Transportation Technology Platforms (ODTTP).

Justice Aravind Kumar passed the interim order after a preliminary hearing on petitions filed by Uber, M/s Helion Technologies Ltd, which wants to start a cab aggregator service, and Satish, a private taxi operator.

Asking aggregators to submit their views on the new rules to authorities, the court directed the government to submit the outcome of the discussion before the next date of hearing on June 20.

Uber’s promise

The counsel for Uber gave an undertaking that it has already discontinued surge pricing and will not employ the same until the court decides the legality of the rule that prohibits aggregators from collecting hire charges beyond the tariff fixed by the government.

Sajjan Poovayya, Senior Counsel appearing for Uber, made this submission when the court expressed concern over surge pricing. He also told the court that they are not against police verification of their drivers but the government can’t force them to seek police verification report at this juncture to process their application for licence under the new rules.

The counsel said that the company, without prejudice to their contentions against the rules, is prepared to submit particulars of drivers attached to its services to the authorities, who have to verify them through the police.

Previous notification

The government had on April 2, 2016, notified the Rules under Section 93 of the Motor Vehicles Act imposing a series of conditions for ODTTP services stating that the rules are for ensuring the safety of passengers.

Meanwhile, an association of radio taxi operators on Wednesday filed an application in support of the rules.

The Transport Department had fixed the maximum fare

for private taxis at Rs. 19.5 per kilometre

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