Delhi, July 10:  Major cab service providers in India, Ola and Uber, are under the scrutiny of the Delhi government and may even have to face a ban for their car pooling schemes. The cab sharing systems are thought to be in violation of the Delhi government’s City Taxi scheme, 2017.

Senior officials in the Delhi government are currently scrutinising the sharing services provided by both Ola and Uber. According to a report in the PTI, a member of the ruling Aam Aadmi Party(AAP) in Delhi was quoted as having said that the process was in its final stages and a notification on the same is expected soon.

The source reportedly added, “The scheme, which is a regulatory framework for cab services in the city, will ban shared cab rides as it is not compatible with the Motor Vehicles Act, 1988.” Commenting on the multiple stopovers made in a shared ride, the source said, “Such rides cannot be allowed unless there is a suitable amendment to the Act.”

Similarly, another official from the Delhi government was quoted by the ET as having said, “In principle, we are in favour of cab sharing as it not only provides an affordable commuting option to passengers but also reduces the number of vehicles on roads. However, such operations don’t come under the present legal framework as taxis are only allowed to be hired from one point to another and cannot pick and drop passengers. We plan to regulate operations of app-based cab services. Though a number of features of the scheme are yet to be finalised, cab sharing option would definitely have to go as it is legally not permitted.”

The main contention of the Delhi government is that both Ola and Uber currently utilise contract carriage permits. This form of permit only allows for the pickup and drop off of passengers from Point A to Point B. In contrast, shared cab rides mean that the taxi service provider has to make multiple stops in a single ride. Such services that make multiple stopovers require stage carriage permit according to the Motor Vehicles Act, 1988, and are frequently taken by bus service providers.