The Gujarat high court has issued a notice to state authorities concerned over a petition filed by auto rickshaw drivers' unions taking exception to the licences issued to private cars that are not registered as taxis but are used for ride-hailing by aggregators in the city.

The Auto Riksha Chalak Welfare Association and Smart City Auto Drivers' Union have sought the court's directions to the transport authorities and the city's regional transport officer not to issue licences to those private vehicles that are not registered as transport vehicles but are used by aggregators like Ola, Uber, Rapido, and Jugnu.

The unions have contended that Section 93 of the Motor Vehicles Act stipulates that the issuance of a licence to ply a vehicle as a taxi requires the vehicle's registration as a transport vehicle. However, authorities grant licences to aggregators to run unregistered transport vehicles as well. They have urged the HC to direct the authorities "to restrict the grant of licences for use of non-transport vehicles and further restrict the use of non-transport vehicles in the city of Ahmedabad by following the procedure laid down in the Motor Vehicles Act and Rules."

The petitioners have contended that allowing such private vehicles to ply on city roads as taxis adds to pollution and traffic problems. In 2020, the Ministry of Road Transport and Highways issued guidelines for the issuance of licences to aggregators. The state govt instructed the commissioner of transport to disallow non-transport vehicles by aggregators on April 16, 2021, and the city's RTO issued a press note to this effect on Sept 22, 2023, stating that carrying passengers in non-transport vehicles is illegal. The RTO issued a show cause notice to Rapido on Jan 4 and suspended its licence for 30 days for violation of this rule.