Published On : Wed, Jul 8th, 2015

Court directs Delhi RTO to grant conditional permission for Uber to operate in Delhi



Uber, an American international transportation network company which develops, markets and operates the Uber mobile app, which allows consumers with smartphones to submit a trip request which is then routed to sharing economy drivers. The Cab service is said to be available in 58 countries and 300 cities worldwide. Uber was founded as “UberCab”.  Many governments and taxi companies have protested against Uber, alleging that its use of unlicensed, crowd-sourced drivers was unsafe and illegal. Even in India, many Road Transport Offices had rejected their application for license to operate their cab (Taxi) service.

When the case appeared in the court, the Judge had claimed that Uber should be allowed to operate while it seeks a license from the Delhi Transport Department. An Indian court on Wednesday July 8, 2015, lifted a ban on Uber Technologies Inc. in Delhi, the capital of one of the ride-hailing company’s most important markets outside the United States. The ruling follows a similar decision by a court last month in favor of Uber’s local rival, ANI Technologies Pvt. LTD.

Justice Manmohan while delivering his judgement said that he does not know if there should be a complete ban. He claimed that he has doubts about it. How can Delhi government stall someone or some company like this, he questioned? He directed the authorities to grant a conditional permission.

The judge on Wednesday, July 08, 2015 said that Delhi has 10 days to set out the requirements for Uber to be granted a license. The Judge claimed that, if the company fails to fulfill the stipulations, transport officials can pass a new order prohibiting the company from operating.

The court also said since the High Court on June 11,2015, had set aside Delhi Government’s June 3, 2015 order, by which application for license of two other app-based taxi services – Apra Cabs India Pvt, Ltd and Serendipity Info labs Private Limited (Taxi for Sure) – were rejected, Uber India Technology Pvt Ltd was “entitled” to a similar relief.

“If the Government of National Capital Territory of Delhi (GNCTD) is not satisfied with the response, it will give the petitioner (Uber) one opportunity to further be heard and give clarification. A decision will thereafter be taken on the application made by petitioner and communicated to them not later than four weeks thereafter,” it said and disposed of Uber’s plea challenging the June 3 order.

The court also told the Transport Department of Delhi government to impose any condition on Uber, in accordance with the law if it was inclined to grant license to the company and told the app-based cab service provider that it will have to comply with the conditions.

The amendment was introduced after certain app-based cab companies were banned in the capital following an Uber cab driver allegedly raping a finance executive in December last year.

The improved scheme imposes various mandatory requirements, including having prefixed calibrated meters, a GPS device and running on CNG, on the companies for grant of license.