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Synopsis

The Delhi High Court has asked the Central Government to clarify its stand on the legality of carpooling applications using private vehicles for commercial purposes. A plea has been filed against the companies engaged in offering "carpooling" facilities for hire and reward using motor vehicles registered as private vehicles.

A bench of Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad asked the Centre to reply as to whether it is allowed under the Motor Vehicle Act.

The plea has been filed by cab operators Ravi Rattan Sharma and Gurminder Singh alleging that the iDISHA Info Labs and other similar companies are offering the car-pooling facility to passengers using private vehicles. 

"The company is operating a mobile application, a website known as 'Quick Ride' which connects passengers with drivers via an algorithm based on pickup and drop-off locations in real-time and schedules rides instantaneously. Surprisingly' the rides offered by the 'Quick Ride' platform are on private vehicles which are vicariously operating as transport vehicles, which are not permitted to operate in any public area for hire or reward", the plea alleged. 

Advocate Sanyam Khetrapal appearing for the petitioners informed the bench that these are private vehicles that are being used for carpooling for commercial purposes.

However, the counsel appearing for the Central Government informed the bench that the Motor Vehicle Act doesn't restrain the use of private vehicles for carpooling purposes and the government is working on introducing a policy in this regard.

The plea submitted that such illegal "car-pooling" operations have been going on in the National Capital Region ("NCR') for a considerable period of time and that the inaction is attributable to Delhi and the Central Government. 

The plea stated that the objective of the Motor Vehicle Act is to maintain economic parity and a level playing field amongst all the Permit holders as against the said objective the activity of 'car-pooling' using private vehicles which is promoting uneconomic and illegal competition thereby gravely affecting the livelihood of valid permitholders and law-abiding citizens.

The bench has listed the matter for further hearing on March 15, 2023.

Case Title: Ravi Rattan Sharma and Anr. Vs. Govt. of NCT of Delhi & Ors.