Cab aggregator cannot operate without license: Supreme Court directs Uber to apply for license to ply in Maharashtra

The Supreme Court on Monday ruled that a cab aggregator cannot work in absence of a license and, therefore, directed Uber to apply for a license to ply in the State of Maharashtra. .A bench led by Chief Justice of India (CJI) DY Chandrachud said that an earlier interim order by the Supreme Court which had allowed Uber to operate in the State would not hold, since an aggregator cannot operate without a license. The Court, therefore, ordered Uber to apply for a license by March 6, 2023.."We are of the view that interim order permitting them to operate without license cannot stand, as an aggregator cannot work in absence of license. Uber to apply for a license within a period of 3 weeks, on or before March 6, 2023," the Court said..The Court was hearing a special leave petition (SLP) by Uber challenging a Bombay High Court order directing it to apply for an aggregator license in the State of Maharashtra in compliance with the Motor Vehicles Aggregator (MVA) Guidelines of 2020 issued by the Central government. Uber had argued that the conditions imposed by the guidelines of the Central government were not practicable..The State of Maharashtra had earlier informed the High Court that its draft guidelines for the issuance of aggregator licenses - the Maharashtra Regulation of Aggregator Rules - had been framed but was yet to be approved by the relevant authorities..The High Court had held that the guidelines issued by the Central government would subsist and be binding on the aggregators, while the State rules remained under consideration..In April 2022, the Supreme Court had ordered status quo in the case..On Monday, the Court was informed by the State of Maharashtra that no coercive action was being taken against Uber although its license had not been renewed, since it had updated its license right after the Court's interim order. .The Court said that Uber could not continue to operate under its interim order and directed it to apply for a license or to adhere to the guidelines.."You apply for a license or adhere to guidelines ... You cannot operate under an interim order of the court. You cannot work as an aggregator without a license and that is a statutory mandate," the Court said..The bench further suggested that Uber could submit a representation to the concerned authorities if the conditions imposed were impracticable.."Meanwhile, Uber can submit a representation showing unworkability of some of the conditions and the State to take a call on the same representation and take a decision so that pending finalisation of rules, a decision is taken regarding grant of license under MVA," the Court ordered..The Court also directed the State to expeditiously work for a policy embodying the framework of the MVA guidelines."State which acts as a regulator must work expeditiously for a policy which embodies the framework of MVA and indecision only causes uncertainties for the aggregators which is not desirable. The State must take a decision now," the Court said..[Read order]