STA tells Ola, Uber to stop operations in Chandigarh

Chandigarh, December 13

Pending approval, the State Transport Authority (STA) has directed both app-based cab operators, Ola and Uber, to stop the operation of vehicles in the city with immediate effect.

The aggregator companies have applied for the grant of licence under the Motor Vehicle Aggregator Guidelines, but it was yet to be granted.

According to an email sent to the aggregator companies, the STA stated that their request for the issuance of the aggregator licence under the Motor Vehicle Guidelines 2020 was under consideration and thus, directed them to stop the operation of vehicles in UT with immediate effect, failing which legal action would be taken against them as per the MV Act and rules framed there under.

Sources said the aggregator companies were to pay nearly Rs 6 crore in entry and licence fee. Ola and Uber had a license to run cabs in the city, which expired on November 4. Both companies have more than 4,000 cabs in the city, most of which are registered in Mohali and Panchkula.

Companies have been saying for a long time that only the drivers of the cabs will pay the entry tax, while the cab drivers say the aggregator companies have an agreement with the STA, so these should pay the tax.

According to sources, the STA is not in favour of issuing licences without getting entry tax. Thousands of people in the city book cabs daily on the mobile app of these aggregator companies. STA Secretary Rupesh Kumar said the applications of both aggregator companies were under consideration.

Firms yet to pay entry, licence fee worth Rs 6 cr

• Sources said both aggregator companies were to pay nearly Rs 6 crore in entry and licence fee
• Both have more than 4,000 cabs in the city, most of which are registered in Mohali and Panchkula
• While companies say cab drivers will pay the entry tax, the latter say the firms should pay the tax as these have an agreement with the STA