Delhi government challans Uber CEO, court serves notice

The Delhi government had also issued the challans to Uber’s India president, Ankit Jain, and general manager for Uber North India, Gagan Bhatia, under section 93 of the Motor Vehicles Act, 1988. The section reads, “No person shall engage himself as an agent or a canvasser… soliciting customers for (public service) vehicles… unless he has obtained a license from such authority and subject to such conditions as may be prescribed by the state government.”

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An enforcement officer of the Delhi transport department said Monday, “Because Uber claims it is a cab aggregator and not the owner of the cabs plying under its brand, we issued challans to Kalanick, Jain and Bhatia for acting as unlicensed travel agents. Metropolitan Magistrate Vaibhav Mehta’s court has issued them a notice and they need to appear before the court on June 8.”

During the second phase of the odd-even scheme in April, Delhi Chief Minister Arvind Kejriwal permanently banned surge pricing and arbitrary fares for cab aggregators Ola and Uber. Both companies suspended peak pricing policies immediately, even as transport officials began impounding their cabs. However, a few days after odd-even phase two ended, Uber revived its peak pricing norms, said officials.

“We continued our enforcement drive when we realised Uber had reinstated peak pricing despite the CM’s orders. We have impounded roughly 400 cabs till date. While the drive was on, we realised it is the cab owners who suffer. Most of them are financially weak, driving cars bought on loans from banks. The parent company is never touched. So we decided to challan Uber’s top brass,” said a senior government official.

Around seven enforcement teams impounded 13 cabs in early May when Uber was found defying government rules. On May 10, the transport department issued 13 challans naming Kalanick, Jain and Bhatia as “the accused”. The “witnesses” are officials leading the enforcement teams that impounded the cabs. The court took cognisance of the challans and issued Uber a notice, said the official. “Uber suspended its peak pricing policy days after the notice reached them last month,” the official added.

Uber spokesperson Ruchica Tomar said the company was not flouting government rules, and keeping its surge rates to a multiple of two or three so as not to cross the government prescribed rate of Rs 23 per km for radio taxis. “We are charging as per government-prescribed rates.” Uber declined to comment on the Delhi government issuing the challans to its top brass.

Delhi government has been trying to rein in cab aggregators. The government banned Uber and other app-based cab aggregators after an Uber driver raped a passenger in his cab. The high court revoked the ban on app-based services, warning the government against “coercive action” like impounding cabs not obeying the ban. The government insists Uber and app-based cabs are plying “illegally” since the case is pending in court.