2-wheeler taxis can't run in Delhi, rules Supreme Court

The Supreme Court on Monday ruled that two-wheeler taxis can't run in Delhi till the government frames a policy. The court's decision comes after the Delhi government said that they will come up with a policy on two-wheeler non-transport vehicles by June 30. Earlier, the government stated that the use of two-wheelers for commercial purposes is in violation of the Motor Vehicles Act, 1988.

Why does this story matter?

The Supreme Court decision is considered a huge blow for aggregators like Rapido and Uber, as two-wheeler taxis were gaining popularity in the national capital. The ruling comes after the government contested the Delhi High Court's order allowing the aggregators to operate bike taxis in the city. The Supreme Court also stayed the High Court's order, putting the services on hold.

Taxi aggregators  Rapido and Uber had challenged government notice 

According to reports, Rapido and Uber had contested a show-cause notice issued by the Delhi government against its operations. Rapido argued that the decision violated a number of fundamental and constitutional rights and was enacted in contravention of natural justice principles. The government notification had threatened two-wheeler taxi drivers with up to Rs. 1 lakh fine, a year in jail, and suspension of licenses.

Supreme Court issues order after hearing pleas of Rapido, Uber 

On Monday, the Supreme Court heard two separate petitions filed by the AAP government challenging the High Court's judgment that no coercive action be taken against bike-taxi aggregators. Last week, the SC also requested a response from the Centre on the Delhi government's petitions.

Delhi HC also allows aggregators to seek immediate hearing

On May 26, while issuing a notice to the Delhi government in response to Rapido's petition challenging a law prohibiting two-wheelers from being registered as transport vehicles, the HC ordered that no coercive action be taken until the final policy was notified. A vacation bench of justices Aniruddha Bose and Rajesh Bindal gave the aggregators permission to seek an immediate hearing on their petition.