Delhi High Court Says Ola's Contention on Non-CNG Vehicles Is 'Incorrect'

Refusing to interfere with its single-judge bench order upholding the ban on app-based cabs in the city, the Delhi High Court on Tuesday held as "factually incorrect" Ola's contention that non-CNG commercial vehicles were not barred from plying in the national capital.

A bench of Chief Justice G Rohini and Justice Jayant Nath also said the online cab service aggregator's contention that as per Supreme Court orders taxis only needed to be Euro II compliant was "misplaced" and dismissed the company's plea challenging the single-judge's July 29 interim order.

The court also said the July 29 order directing Delhi government and the traffic police to enforce the transport department's January 1, 2015, order banning operation of app-based cab services till they comply with the modified Radio Taxi Scheme, was "unexceptionable".

The bench observed that the single-judge's direction was passed with the purpose of strict compliance of the apex court's orders in M C Mehta case.

"On a careful reading of the various orders passed in M C Mehta from time to time, it appears to us that the assertion of the appellant (Ola), that there is no ban on plying commercial vehicles in Delhi unless they are converted to single fuel mode of CNG, is factually incorrect," it said.

"In the order dated March 26, 2001 in M C Mehta, the Supreme Court reiterated that no commercial vehicles shall ply in Delhi unless converted to single fuel mode of CNG with effect from April 1, 2001.

"The reliance of the senior counsel for the appellant on the order dated September 24, 1999 to substantiate his contention that the requirement is only to the effect that the diesel driven taxis shall conform to EURO II norm appears to be misplaced in the light of the later orders...," the court also said.

ANI Technologies Pvt Ltd, which operates under the name of Ola, had challenged the single-judge's July 29 order.

The high court refused to interfere with its single-judge order saying it did not find any "justifiable reason" for it.

"Even the direction that the respondents 1 (Delhi government) and 2 (traffic police) shall enforce the impugned order dated January 1, 2015 qua All India Tourists Permit (AITP) taxi operating on diesel on point to point basis within National Capital of Delhi, according to us, is unexceptionable since same is intended for the purpose of strict compliance of the directions in M C Mehta," the court said.

In a reaction to the high court's decision, a spokeperson for ANI Technologies said,"We respect the honorable division bench's order on commercial diesel vehicles on all aggregator platforms in the state of New Delhi, as well as on those plying independently.

"We are working closely with the authorities to help and support the thousands of driver entrepreneurs and lakhs of citizens in the state, who use the Ola app."

In its plea before the single-judge, Ola has contended that it was not amenable to the Delhi government's modified Radio Taxi Scheme as cabs contracted by it have All India Tourist Permits and thus, it does not need to apply for licence to operate in the city.

It has also said as per the Supreme Court order of 1998, cabs only had to comply with Euro-II (and now Euro IV) norms and switching to CNG was not a mandatory requirement.

Ola has argued that other taxi organisations, which are not app-based, come under Radio Taxi Scheme and they own cabs they operate, while Ola does not own the vehicles that run under their brand and only connects the taxis with customers.

Delhi government's January 1, 2015, order had banned operation of app-based cab services till they complied with the guidelines of Radio Taxi Scheme of 2006 which was amended on December 26 last year.

The scheme was amended after a woman executive was allegedly raped in a Uber cab in December last year.