The Transport Department has issued a warning to bike taxi operators not to operate on Delhi's roads, noting that doing so would be a breach of the Motor Vehicles Act of 1988 and subject aggregators to a punishment of Rs 1 lakh.
The Motor Vehicles Act of 1988 is broken when two-wheelers are used for business purposes. The department stated in a public notice that a first offence might result in a fine of Rs 5,000 while a second offence could result in a fine of Rs 10,000 and up to a year in jail.
In these cases, the motorist will additionally suffer a three-month licence suspension.
According to the notification, some app-based businesses are misrepresenting themselves as aggregators in defiance of the 1988 act. A fine of Rs. 1 lakh will be imposed as punishment for this.
The Supreme Court turned down Rapido's request for relief from the Maharashtra government's refusal to issue it a licence earlier this month.
It had been mentioned that the Motor Vehicles Act's 2019 revisions made it plain that aggregators must have a current licence in order to operate. The Regional Transport Office in Pune had turned down the application for a licence on December 21, according to a bench that included Chief Justice DY Chandrachud, Justices PS Narasimha and JB Pardiwala.