License Limbo: Ola & Uber Granted Temporary Reprieve Amid Regulatory Tussle

In a recent development, the Pune Regional Transport Office (RTO) has announced a grace period of one month for ride-hailing giants Ola and Uber following the denial of their aggregator licenses. This decision comes as a temporary respite for the companies, allowing them time to appeal the ruling before facing any enforcement action.

According to a senior RTO official, Ola and Uber have been granted the opportunity to file an appeal with the state transport appellate tribunal within the stipulated timeframe. The final decision regarding their operations will be contingent upon the tribunal’s resolution of the matter.

Despite the uncertainty looming over their licensing status, taxi services operated by Ola and Uber continued to operate normally in Pune and Pimpri Chinchwad on Wednesday. However, some passengers reported instances where drivers demanded additional fares beyond the app-generated charges, hinting at potential challenges ahead.

One passenger recounted an incident where a driver demanded extra payment, citing reduced bookings following the license rejection. However, skeptical of the claim, the passenger refused to comply, highlighting the unease among drivers amid the prevailing circumstances.

Expressing concerns over the precarious situation, a taxi driver voiced apprehensions about the risk of facing punitive measures from RTO officials or law enforcement officers despite their ongoing struggles for fare revisions.

Meanwhile, Keshav Kshirsagar, president of the Indian Gig Workers Front, reassured that the license denial was not anticipated to trigger any immediate disruptions or strikes among taxi drivers. However, he emphasized the importance of Ola and Uber adhering to regulatory directives, particularly in implementing the recommended fare structures outlined by the Khatua Committee.

The rejection of aggregator licenses by the Pune RTA on Tuesday stemmed from the companies’ noncompliance with various regulations, notably pertaining to insurance and term policies for taxi drivers. RTO officials cited discrepancies in adherence to Central Aggregator Guidelines parameters as key factors leading to the license denial.

As Ola and Uber navigate the appeals process, the future of ride-hailing services in Pune hangs in the balance, with stakeholders closely monitoring developments for potential implications on both drivers and passengers.

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