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Delhi Transport Department Cancels Zoomcar's License Over Regulatory Violations

The Delhi transport department has cancelled Zoomcar's license due to violations of the Rent a Cab Scheme, 1989, and several sections of the Motor Vehicle Act and the Delhi Motor Vehicle Taxation Act, 1962.

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Dil Bar Irshad
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Delhi Transport Department Cancels Zoomcar's License Over Regulatory Violations

In a significant blow to the cab-renting industry, the Delhi transport department has cancelled the operating license of Zoomcar India Private Limited, a widely favored platform in the city. The decision stems from Zoomcar's violation of the Rent a Cab Scheme, 1989, a set of rules designed to regulate commercial transactions for cab services.

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Zoomcar's Violation of the Rent a Cab Scheme

The Rent a Cab Scheme, 1989, stipulates that cab-renting companies must maintain a minimum fleet of 50 cabs. At least half of these cabs should be air-conditioned, and all should possess comprehensive insurance and fitness certificates. Zoomcar, however, was discovered facilitating commercial transactions with private vehicles not owned by the company, thereby violating these rules.

Zoomcar Host Services: A Breach of Multiple Acts

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Zoomcar's violation was not limited to the Rent a Cab Scheme alone. The company's scheme, known as Zoomcar Host Services, was seen as a breach of several clauses and sections of the Motor Vehicle (MV) Act and the Delhi Motor Vehicle Taxation Act, 1962. This scheme allowed transactions between private car owners and consumers, without Zoomcar being part of the agreement.

Zoomcar's Silent Admission and License Cancellation

The transport department issued a show cause notice to Zoomcar over these violations. However, the company failed to respond, a silence that was interpreted as an indirect admission of guilt. Given the gravity of the misconduct, the department deemed it necessary to cancel Zoomcar's license immediately. The license, originally issued on November 22, 2014, was recently renewed until November 2024. Zoomcar has been directed to surrender the original license without delay. The company, however, has chosen not to comment on the matter.

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