SC converts ban on diesel cabs to ‘gradual phase-out’

Bench asks Delhi govt to allow city taxis to extend area of operation

May 10, 2016 06:00 pm | Updated September 20, 2016 12:19 pm IST - NEW DELHI

Making it clear that it's final objective is a gradual phaseout of diesel taxis, the Supreme Court on Tuesday tweaked its April 30 blanket ban to allow diesel-run All India Travel Permit taxis to operate till the expiry of their existing permits.

The ban on diesel taxis which had not converted to CNG from May 1, had led to widespread protests, forcing the Delhi government and the Centre to urgently approach the Supreme Court for modification of its April 30 order.

The Centre argued that ban on diesel cabs with All India Travel Permits (AITP) would severely cripple the burgeoning BPO businesses located mostly outside Delhi in the National Capital Region (NCR) of Gurgaon.

BPOs contract AITP operators to conduct point-to-point ferrying of employees numbering to several thousands from Delhi to Gurgaon, which is technically in neighbouring Haryana. However, the ban — both on diesel taxis and diesel vehicles over 2000 CC engine capacity — had left many BPO and taxi operators in dire straits.

“You must understand what we are trying to do here... There has to be a gradual phase-out. Using AITP vehicles to ferry BPO staffers is abusing the law. These are not genuine AITP operators and are used only by BPOs,” Chief Justice Thakur said.

The Bench then directed the Delhi government to allow city taxis having valid permits under the Motor Vehicles Act, 1988 to extend their area of operation from the confines of National Capital Territory (NCT) of Delhi to all NCR regions, including Gurgaon, to make up for the lack of vehicles caused by the continuing ban on diesel vehicles with over 2000 CC engine capacity.

This is subject to the condition that city taxi operators get their permits countersigned by the competent authority in charge of the NCR they propose to operate in.

Incidentally, most of the 24,000 city taxis are either petrol-run or have long since shifted to eco-friendly CNG.

The court ordered that registration of city taxis is permissive only if these vehicles run on dual fuel (petrol + CNG) or petrol or CNG.

No diesel city taxi will be permitted, the bench clarified.

As for AITP taxis, they would be permitted to continue their point-to-point intra NCT-NCR operations till their permits expire, provided the operators follow all the rules of passenger safety, security and fare issued by the competent authorities.

This means that AITP operators will have to place on record for prior clearance all relevant details including their drivers' licences, vehicle insurance details, among others.

Any new AITP permits will not further authorise such point-to-point pick-up and drop operations within NCR.

“Authority issuing AITP permits shall insist on an undertaking from the AITP permit applicant that he shall not use the taxi for point-to-point service within NCR,” Chief Justice Thakur ordered.

The court urged the government to frame suitable law in this regard with a premium on environment.

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