State Transport Authority (STA) Chandigarh has issued notices to two app-based cab operators – Ola and Uber – to stop operations in the Union Territory (UT) with immediate effect as both the companies have failed to get a licence under the Motor Vehicle Aggregator Guidelines.
Last year, both the companies were granted licences for running the rented taxis in Chandigarh, but the same expired on November 4. Sources said that the two companies are yet to deposit around Rs 6 crore entry and licence fee to the UT administration.
According to the notice, the STA stated that their request for the issuance of the licence under the Motor Vehicle Guidelines 2020 was under consideration and thus, directed them to stop operation of vehicles in the UT with immediate effect, failing which legal action would be taken against them as per the MV Act.
“We served notices to the companies. The companies have applied for the licence and their applications are under consideration,” STA Secretary Rupesh Kumar said.
Approximately 4,000 cabs being operated in the city, most of which are registered in Mohali and Panchkula, are under Ola and Uber.