Why MVD can’t act on ‘illegal’ online taxi aggregators in Kerala
KOCHI: Despite the Kerala transport minister openly labelling the operations of multinational online taxi aggregators like Uber and Ola as “illegal” for their failure to register under state regulations, the motor vehicles department (MVD) is unable to take specific punitive action. The core issue, as articulated by traffic experts and legal professionals, is a critical gap between policy and law. To be precise, policy exists but specific rules do not.
The Union government, through amendments to the Central Motor Vehicles Act, 2019 (specifically, Sections 93 and 193), made it mandatory for aggregators to hold a licence from the respective state to operate. Following this, the Kerala government framed a policy—based on central guidelines—requiring registration with the State Transport Authority (STA).
However, as former Ernakulam Regional Transport Officer (RTO) B J Antony noted, the state has not yet formulated the rules necessary to implement and enforce the policy.
“Though the Central Act is there, the lack of specific rules, to be framed by the state, are rendering the authorities powerless to act against the online taxi services. These rules would define key administrative aspects such as who should be the licensing authority, the exact licensing system and fee structure, the process for penal action if rules are violated, and so on. Without legally binding rules, the state’s aggregator policy lacks the legal backup required for the MVD or the transport commissioner to issue formal notices or register cases against the companies, despite the minister’s strong statements,” Antony pointed out.
The situation is further complicated by the popularity of these services, which, according to experts, serve the aim of public transportation.
“The government’s aim too is to provide sufficient travel facilities. Instead of terming their operations as illegal, the authorities should bring in a legal framework that allows for their smooth functioning, but in a controlled way. For instance, the state rules should have clauses that the data of online taxi drivers should be provided to the MVD, which driver is attached to which vehicle, whether the cabs have undergone pollution test, etc,” said transport expert G P Hari, former additional general manager (urban transport), Kochi Metro Rail Ltd.
Backlash and demand for comprehensive law
Transport Minister K B Ganesh Kumar’s “illegal” tag has ignited a backlash from the Online Taxi Drivers Union (OTDU). Citing recent incidents in Kozhikode and Thrissur, the union charged that the “irresponsible” statements have escalated violence and physical assaults against online cab drivers by local taxi and autorickshaw unions.
OTDU, which is seeking clarity on the legal status of online taxis from the Kerala High Court, is demanding a comprehensive law to govern the sector. “The current central and state ‘aggregator policies’ are too vague for effective implementation. We challenge the government to register cases if the operations are truly illegal. So far, no official notice has been served to Uber or Ola to cease services,” said OTDU legal advisor T R S Kumar.