In a major blow to bike taxi services, the Supreme Court has stayed Delhi High Court’s order that allowed bike taxi aggregators including Rapido, Uber to operate bike taxis until specific regulations are formulated.

Delhi Government moved to the apex court against the Delhi High court order that directed the transport department to not take any coercive action against Rapido and Uber until the final policy in this regard is notified.

Reportedly, a Vacation Bench of Justices Aniruddha Bose and Rajesh Bindal was hearing a special leave petition filed by the Delhi Government.

The court observed that the stay order issued by the Delhi High Court was unwarranted as the Delhi government was in the process of formulating a policy for granting licence to bike taxi aggregators.

In its plea, the Delhi government stated that bike taxi aggregators are continuing the use of non-transport vehicles, including two-wheelers which is not permissible under the Motor Vehicles Act.

Delhi government also submitted that the policy for licencing would become effective by July 31, 2023.

The two parties have been embroiled in a legal battle since Delhi’s transport department in February 2023 banned all players from offering bike taxi services in the national capital. It also announced a penalty of INR 1 Lakh on aggregators found flouting the order.

Rapido said in a petition before the Delhi High Court that the transport department’s order banning bike taxis was passed without any reason or rationale. Challenging the show-cause notice, Rapido claimed that the order violated various fundamental and constitutional rights and infringed principles of natural justice.

“The direction issued by the transport department under the impugned notice is ex-facie arbitrary and passed without following due process under law, without providing any reasons for such prohibition,” Rapido’s plea claimed.

Meanwhile, the transport department had published ‘Draft Delhi Motor Vehicle Aggregator and Delivery Services Provider Scheme’ last month and invited feedback. For two and three wheelers, the government has provided a target timeline of four years from the date of notification for 100% EV adoption.

“The Aggregator shall be allowed to operate bike taxi (two-wheeler taxi) services, provided that any vehicle being on-boarded as part of the fleet by from the date of commencement of this scheme shall be Electric Vehicles only,” the draft said.