HC issues notice to Delhi govt on plea challenging law against registering 2-wheelers as 'transport vehicles'

The Delhi High Court sought the stand of the city government on Friday on a plea moved by Rapido, challenging a law that excludes two-wheelers from being registered as ''transport vehicles'', and directed that no coercive action be taken against the bike-taxi aggregator in this regard for the time being.

The matter was heard by a bench of Justices Suresh Kumar Kait and Neena Bansal Krishna.

The court ordered that no coercive steps shall be taken by the authorities here against Rapido bike-taxi and its riders until the requisite regulation to regulate the operation of bike-taxis is notified, said Rapido's lawyer Abhishek Awasthi, senior partner at the AZB and Partners law firm.

A similar order granting protection from coercive action for plying bike-taxis in Delhi was also passed by the court on a petition filed by Uber.

In its petition, Roppen Transportation Services Private Limited, which runs Rapido, has said a 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.

In a public notice issued earlier this year, the government had cautioned bike-taxis against plying in Delhi and warned that violations would make aggregators liable for a fine of up to Rs 1 lakh.

Rapido has also challenged a show-cause issued to it in this regard, saying it is in violation of various fundamental and constitutional rights and has been passed in violation of the principles of natural justice.

''The direction issued by the transport department under the impugned notice is ex-facie arbitrary and passed without following due process under law, without providing any reasons for such prohibition,'' the plea says.

It also says the city government's conduct is contrary to the intent and object of the Centre with respect to issuance of licences to aggregators as laid down under the Motor Vehicles Act, read with the Motor Vehicle Aggregator Guidelines, 2020 (MoRTH Guidelines).

''Transport department is yet to come up with its own guidelines with respect to plying of two-wheeler non-transport vehicles as transport vehicles for the purpose of aggregation and ride-sharing/ride-pooling. MoRTH Guidelines expressly allowed vehicle pooling in non-transport vehicles in furtherance of the central and state governments' objective of reducing traffic congestion and automobile pollution and achieving effective asset utilisation unless it is prohibited by the state government,'' the plea says.

It further says a blanket ban on the petitioner's services impacts the lives and livelihoods of a huge number of vehicle owners and riders as well as a substantial number of daily commuters.