Both the companies were granted licences, last year, for running the rented taxis in the city.

Chandigarh News: Big news coming in from Chandigarh that the State Transport Authority (STA) has told Ola and Uber to stop operations in the city, given their licence under the Motor Vehicle Aggregator Guidelines has not been renewed. 

According to information, the State Transport Authority (STA) Chandigarh has issued notices to both the cab operators – Ola and Uber – and asked them to stop operations in the Union Territory with immediate effect. This is because both companies have failed to get a licence under the Motor Vehicle Aggregator Guidelines.

It may be recalled that both the companies were granted licences, last year, for running the rented taxis in the city. However, the same expired on November 4. As per sources, quoted by several reports, the two companies are yet to deposit over Rs 6 crore entry and licence fees to Chandigarh's administration.

As per the notice, the State Transport Authority stated that their request for the issuance of the licence under the Motor Vehicle Guidelines 2020 was under consideration. Therefore, the administration has directed them to stop the operation of vehicles in the UT with immediate effect. 

The administration has also warned both the can operators that if they failed to adhere to the directions then a legal action would be taken against them, as per the Motor Vehicle Act.

STA Secretary Rupesh Kumar stated, “We served notices to the companies. The companies have applied for the licence and their applications are under consideration.” 

It is pertinent to mention that over 4,000 cabs being operated in the city, mostly registered in Mohali and Panchkula, are under Ola and Uber.

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