Supreme Court Directs Uber: To Apply for License to Continue Operations in Maharashtra within 3 Weeks

Supreme Court Directs Uber: To Apply for License to Continue Operations in Maharashtra within 3 Weeks

The Apex Court by its three judges bench comprising of Chief Justice of India DY Chandrachud, Justices PS Narasimha and JB Pardiwala ordered Uber India Services Private Ltd. to apply for license under the Motor Vehicle Amendment Act (MVA) within a period of three weeks i.e., by 6th March 2023 in order to continue its operation as an aggregator in the state of Maharashtra.

The bench said that an earlier interim order by the Supreme Court that had allowed Uber to operate in the state without an aggregator license would not provide legal cover, stressing that cab aggregators cannot function without one.

"We are of the view that interim order permitting them to operate without license cannot stand, as an aggregator cannot work in absence of a license. Uber to apply for a license within a period of three weeks, on or before 6th March, 2023," the bench stated.

Earlier, the top court in an interim order in April 2022 directed the status quo on the Bombay High Court order that asked Uber India to comply with Motor Vehicle Aggregator (MVA) guidelines issued by the Central government.

The Court was hearing a special leave petition filed by Uber challenging the Bombay High Court order directing it to apply for an aggregator license in Maharashtra in compliance with the Centre's Motor Vehicle Aggregator Guidelines 2020.

The Uber had informed the Court, that the State Government was yet to finalize its guidelines with respect to cab aggregators and the authorities competent to issue licenses to aggregators were yet to be notified.

Consequently, the bench also asked the Maharashtra government to soon frame guidelines for aggregators. The state must work expeditiously towards a policy that embodies the framework of the Motor Vehicles Act, and "indecision only causes uncertainties for the aggregators, which is not desirable," the Court said.

The Maharashtra government has appointed a committee under the chairmanship of former IAS officer Ramakant Jha. The panel has been asked to submit a report by 15th March, and the government is expected to take a decision by 31st March.