Delhi Govt vs Rapido: Supreme Court seeks Centre’s stand on plea against HC order on bike taxi aggregators

The Supreme Court has sought the Centre’s views on the Delhi government’s plea challenging the Delhi High Court order, which stayed a notice to bike-taxi aggregator Rapido and allowed it to operate till the final policy is notified. The apex court posted the matter for hearing on June 12 (Monday).

On Wednesday, a vacation bench of Justices Aniruddha Bose and Rajesh Bindal had deferred the case for Friday and said it will hear it along with taxi aggregator Uber’s plea. 

In the plea filed before the apex court, the Delhi government said that in view of the impugned interim order of the High Court, Uber and Rapido are continuing the use of non-transport vehicles including two-wheelers for the purpose of aggregation and ride pooling, which is not permissible under the Motor Vehicles Act without obtaining valid permits. 

The Delhi government stated that the Delhi Motor Vehicle Aggregator Scheme, 2023 has already been prepared and the same is now only pending approval from the competent authority. 

“Plying of the bike taxis by the respondents cannot, among other reasons, be permitted without complying with conditions like police verification, obligations of installing GPS devices, panic buttons, etc. to ensure road safety and safety of the passengers," the plea said. 

During the hearing on Friday, the Vacation Bench asked Delhi government counsel senior advocate Manish Vashisht whether the plying bike taxis have private number plates and whether they have been permitted to work under private number plates.  

Replying to the bench, the counsel said the bike taxis are under Section 2(1)(a) of the Motor Vehicles rules that highlight that aggregators must obtain a licence.  

The counsel further added that the state government has already drafted a policy in this regard and invited public comments. The timeline for giving suggestions and objections will lapse on June 21. He said that following that the government will finalise the policy. 

The apex court also pointed out that bike taxis are at high risk as there is no insurance cover in case of accidents.  

Senior advocate N K Kaul, who was appearing for Uber, said misconceptions are being created regarding the safety of bike taxis. He said insurance cover is there for the drivers and that Uber is only an aggregator. 

Following this, the Vacation Bench said copies of both petitions be served to the Union of India through its Solicitor General so that stand of the Centre can be obtained.  

The Supreme Court will hear the case on June 12.  

On May 26, the Delhi High Court, while issuing notice to the Delhi government on Rapido's plea, directed no coercive action will be taken against the bike-taxi aggregator till the final policy has been notified. 

In February 2023, the Delhi Transport Department issued a public notice to stop plying their bike taxi services effective immediately.  

The app-based aggregators were prevented from plying bike taxis on the road without commercial permits. The transport department had warned that any violation will result in penal action.  

 The public notice by the transport department said that the companies defying the orders will be fined up to Rs 1 lakh, as the use of bikes for commercial purposes violated the Motor Vehicles Act, 1988.  

Rapido challenged a show-cause issued to it by the city government in that context, saying it is in violation of various fundamental and constitutional rights, and has been passed in violation of the principles of natural justice.  

The Delhi High Court, which has listed Rapido's plea on August 22 before the registrar for completion of pleading, said in its May order: “The counsel for the petitioners (Rapido) submits that policy is under active consideration. Accordingly, we hereby stay the notice and make it clear that the stay shall operate till the final policy is notified. However, once the final policy is notified, if the petitioners are still aggrieved, they are at liberty to take steps before the appropriate forum.”  

In its petition before the high court, Roppen Transportation Services Private Limited, which runs Rapido, said the Delhi government order directing it to immediately stop plying non-transport two-wheelers from carrying passengers on hire-and-reward or for commercial purposes was passed without any reason or rationale.  

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