The Delhi High Court has sought a response from an NGO Nyaya Bhoomi after Ola cabs’ parent ANI Technologies filed a plea for withdrawing a criminal complaint against it, reports PTI. The NGO had petitioned for recovery of Rs 91,000 crore from Ola for allegedly overcharging the riders. Prompted by which, Justice Sanjeev Sachdeva issued a notice to the NGO seeking its response by August 20 on the plea of ANI Technologies. The case document has not been uploaded yet on Delhi High court website, and hence MediaNama could not verify the details independently.
The company was summoned in a trial court for violating provisions of the Motor Vehicles (MV) Act by operating taxis without a licence and overcharging the passengers, at the time the trial court had also reportedly summoned Uber India and Taxi For Sure for the same.
In its plea, Ola reportedly claimed that the trial court order was legally or factually correct as till date the Delhi government does not have a scheme to regulate app-based cab services. MediaNama has reached out to Nyaya Bhoomi for details and information, and we will update the post as soon as they call us back.
App-based Cabs Fare
Ever since the app-based cab aggregators have started scaling in the country, they have been surrounded with fare related scrutiny. Delhi government has been looking at capping surge pricing for online cab aggregators, and at the time of this report state transport minister Kailash Gahlot had said that the cap will be included the in the City Taxi Scheme 2017, which is apparently awaited currently.
Most recently, Karnataka government notified minimum and maximum fares for taxis operated by aggregators like Ola, Uber, and others. And, the new pricing structure also allows cab aggregators to legally exercise dynamic or surge pricing as the Transport department has set minimum and maximum fare limits. Before that, The Maharashtra government told Bombay high court that it will be deciding to fix both minimum and maximum fares for app-based taxi companies such as Ola and Uber.
More that passengers, fixing fare structure is crucial for driver-partners of these companies. This year, there has been a spate of protests across the country as drivers have been demanding better incentive structures as their earnings have started falling. The drivers said that they are not able to make their ends meet or pay EMIs for their car loans. In February last year, we saw the first instance where an Ola driver tried to kill himself by consuming poison in a strike in Bangalore. The fair fare structure will maintain the profitability of companies such as Ola and Uber, which should, as a result, ensure that drivers’ earnings are not hit.