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Supreme Court Halts Operations Of Rapido And Uber in Delhi

This decision comes in response to the Delhi government's challenge against a High Court order that prevented coercive action against the bike-taxi aggregators until a final policy was notified.

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In a significant development, the Supreme Court today halted the operations of bike-taxi aggregators Rapido and Uber in the national capital, suspending the earlier High Court order that allowed them to function until a new policy was formulated. The court directed the Delhi government to refrain from taking any coercive action against the aggregators until further clarity on the matter.

According to the reports by NDTV, responding to two separate petitions by the AAP government challenging the High Court's directive, the top court intervened to assess the legality of bike-taxi services in Delhi, pending the formulation of a comprehensive policy by the government.

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Recently, the Supreme Court sought a response from the Centre regarding the pleas filed by the Delhi government. Earlier this year, the government issued a public notice cautioning aggregators like Ola and Rapido that deploying two-wheelers for commercial purposes violated the Motor Vehicles Act, 1988. The transport department emphasized that the first offense could result in a ₹5,000 fine, while a second offense could lead to a ₹10,000 fine and a potential one-year imprisonment. Furthermore, the driver's license could be suspended for three months under such circumstances.

Challenging the show-cause notice issued by the city government, Rapido contended that it violated fundamental and constitutional rights, and was passed without adhering to principles of natural justice.

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Roppen Transportation Services Private Limited, the company operating Rapido, argued in its petition before the High Court that the Delhi government's order to immediately cease non-transport two-wheelers from providing passenger services lacked any reasonable justification or rationale.

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