SC Verdict: Cab Aggregators Cannot Operate Without A License; Directs Uber To Apply For A License

The Supreme Court ruled on Monday that cab aggregators cannot operate without a license and directed Uber to apply for a license to operate in Maharashtra. Chief Justice of India (CJI) DY Chandrachud led the bench, which stated that a previous interim order allowing Uber to operate in the state could not stand because an aggregator cannot operate without a license. The court set a deadline for Uber to apply for a license, which is March 6, 2023.

The court was hearing a special leave petition (SLP) filed by Uber challenging a Bombay High Court order that required Uber to obtain an aggregator license in Maharashtra, in accordance with the 2020 Motor Vehicles Aggregator (MVA) Guidelines issued by the Central government. Uber contended that the guidelines were not practical.

The Maharashtra State Government informed the High Court that they had drafted their own guidelines for issuing aggregator licenses, known as the Maharashtra Regulation of Aggregator Rules, but it was awaiting approval from the appropriate authorities.

The Court held that the guidelines issued by the Central government would remain valid and enforceable for aggregators.

The Supreme Court had previously ordered a status quo in the case in April 2022. During Monday's hearing, the State of Maharashtra informed the court that it had not taken any coercive measures against Uber for not renewing its license, as the company had updated its license after the court's interim order.

However, the court ruled that Uber could not continue to operate under the interim order and instructed it to apply for a license or follow the guidelines. The court also suggested that Uber could petition the relevant authorities if it found the conditions impractical. Additionally, the court directed the state to work expeditiously on a policy that incorporates the framework of the MVA guidelines.