Court Accuses Ola, Uber for Allegedly Overcharging

App-based cab service suppliers, comprising Uber and Ola, this week were blamed by a Delhi court for supposedly overcharging passengers and operating taxis in the town without license.

Abhilash Malhotra, the Metropolitan Magistrate, claimed that a case of prima facie for violation of permit was made out in opposition to the companies for supposedly charging more fares. This is in infringement of the policies of the Motor Vehicles (MV) Act. The court called Uber India Systems Pvt. Ltd., ANI Technologies Pvt. Ltd., which operates Ola, and Serendipity Infolabs Pvt. Ltd., which runs Taxi For Sure, and directed their authorized administrators to be present before it.

Court Accuses Ola, Uber for Allegedly Overcharging

The order of the court came on the plea of NGO Nyayabhoomi, filed via advocate Sumit Kumar, looking for prosecution of the 3 companies under several provisions of the MV Act. The MV Act’s Section 93(1)(I) orders that an agent who asks for the users for Public Service Vehicles (PSV) is needed to get hold of a license under the Act.

The court observed that companies are operating the PSV on basis of contract carriage. The court also observed that through its secretary, the NGO has also given on record documents saying that the companies were overcharging.

Additionally, in the coming period app-based cabs such as Ola and Uber might be banned from providing the sharing of ride choice to users in Delhi. The City Taxi Scheme, 2017, the summary of which is being finalized by the transport department of Delhi Government, is expected to prohibit this service since it is not permitted legally.

“In standard, we are in favor of cab sharing since it not only offers inexpensive commuting choice to customers but also lowers the number of cars on roads. On the other hand, such processes do not come below the current lawful framework since taxis are only permitted to be appointed from 1 point to another and can’t pick and drop customer,” a government administrator claimed.

Even though the summary scheme is still being finalized, officials of transport department are certain that sharing a ride might not be permitted.

It seems that the future of ride-hailing companies is in danger.

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