Let there be fare competition, Bombay HC tells government on cabs

Mumbai: The Bombay high court upbraided the state government for coming out with questionable rules for private cab service providers. The app-based cab service providers had approached the court complaining about the government levying excessive charges on them and introducing new rules that would make it difficult for them to carry out their business in the city.

The division bench of Justice R.M. Savant and Justice Sadhana Jadhave was hearing a bunch of petitions filed by Uber India Ltd, Ola Ltd and six drivers plying cabs with these two companies, challenging the Maharashtra City Taxi Rules implemented by the Maharashtra government this year.

The petitions alleged that the rules were arbitrary and bad in law.

During the hearing, the bench observed that a plain reading of the rules shows that it discriminates between black and yellow taxis and the mobile app-based cab services. The court asked the state government to be more rational and allow a fair opportunity for business to all kind of cab operators.

“There seems to be a clear discrimination on several points wherein the ‘kaali peeli taxis’ (black and yellow) are given benefit,” said Justice Savant.  The Justice also said that the government should treat everyone equally. “Make it more rational. Let there be fare competition,” he added.

Additional government pleader G.W. Mattos, informed the court that the committee set up by the government to look into the fare structure fixation has still not submitted its report and sought time to file an affidavit in reply to the petitions. The bench later deferred the hearing till September 15.