HomeNewsTrendsLegalSC directs Uber to apply for license in Maharashtra to continue its operations there

SC directs Uber to apply for license in Maharashtra to continue its operations there

The bench observed that the law mandates that an aggregator cannot operate without a license and Uber cannot continue to operate on the basis of the SC’s earlier interim order

February 13, 2023 / 15:32 IST
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The Supreme Court observed that Motor Vehicles Act, as amended in 2019, makes it clear that aggregators cannot operate without a valid license.
The Supreme Court observed that Motor Vehicles Act, as amended in 2019, makes it clear that aggregators cannot operate without a valid license.

The Supreme Court on February 13 asked Uber to apply for a fresh license in Maharashtra in three weeks’ time (by March 6), to continue its operations in the state.

The earlier interim order by the Supreme Court, which allowed Uber to operate in the state cannot sustain itself as the law mandates that an aggregator cannot operate without a license, the bench observed on February 13. The Supreme Court observed that Motor Vehicles Act, as amended in 2019, makes it clear that aggregators cannot operate without a valid license.

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The Court was hearing a plea by Uber challenging a March 2022 Bombay High Court order, directing it to apply for an aggregator license in the state as per the Motor Vehicles Aggregator (MVA) Guidelines of 2020 issued by the Central government. The HC , while not prohibiting aggregators from plying cabs in the state, asked them to obtain licenses in a stipulated period of time, meanwhile saying it was aware such a move would adversely affect commuters.

In April 2022, the SC ordered status quo in the case, permitting it to operate without obtaining license. It is Uber’s contention that the conditions imposed by the guidelines of the Central government were not practicable and it may be difficult to follow them in letter and spirit.