SC Grants Delhi Government Extension to Finalize Vehicle Aggregator Scheme for Two-Wheelers

The Supreme Court has granted an extension to the Delhi Government for finalizing the Delhi Motor Vehicle Aggregator and Delivery Service Provider Scheme, 2023, for regulation of two-wheeler aggregators till 30^th September, 2023.

A division bench of Justice Aniruddha Bose and Justice Bela M. Trivedi allowed the Delhi Government’s application for an extension of time.

The Court had previously been apprised that the Delhi Government had formulated the Delhi Motor Vehicle Aggregator and Delivery Service Provider Scheme, 2023, and public notices had been issued to invite objections to the policy. The deadline for receiving objections was June 24. It was informed that the Delhi Government aimed to finalize the policy by July 31, 2023.

The Top Court noted that despite being served, Rapido (Roppen Transportation Services Private Limited) was not present in Court today. Among the respondents, only Uber was present today and they did not object to the extension of time.

“We do not think it is necessary to wait for Roppen Transportation Services Private Limited as they have chosen not to appear inspite of service. The present application is allowed and extension of time for issuing notification on Delhi Motor Vehicle Aggregator and Delivery Service Provider Scheme, 2023 is extended till 30th September 2023.” the order stated.

On June 12th, the Apex Court had stayed the Delhi High Court’s order allowing bike-taxi aggregators Rapido and Uber to operate without aggregator licenses in Delhi until the Delhi Government’s policy was notified. The Supreme Court had granted liberty to the parties to approach the Delhi High Court for an early hearing of the main matter.

In February 2023, the Delhi Government issued a public notice prohibiting two-wheeler use by aggregators without proper licenses or permits. Aggregators like Rapido and Uber challenged this notice before the Delhi High Court. The High Court’s impugned order on May 26th, 2023, directed that no coercive action be taken against bike-taxi aggregators until a final policy was notified.

In the plea before the Supreme Court, the Delhi Government argued that due to the High Court’s interim order, Uber and Rapido continued to use non-transport vehicles, including two-wheelers, for aggregation and ride pooling, which was impermissible under the Motor Vehicles Act and the Motor Vehicle Aggregator Guidelines, 2020, without valid permits.