Ahmedabad: The Gujarat High Court has asked the state government to spell out its stand on the use of privately registered vehicles for commercial passenger transport while hearing a petition challenging the operations of ride-hailing platform Rapido.

The direction came during the hearing of a petition filed by the Rickshaw Welfare Association, which alleged that Rapido allows privately registered vehicles to ferry passengers for profit, in violation of existing transport laws. The court has asked the government to submit a clear policy on the issue within a week and has scheduled the matter for further hearing.

Appearing for the petitioners, lawyers argued that private vehicles cannot legally be used for commercial passenger services without the required permits and registrations. They also told the court that although the state government had suspended Rapido’s licence for a month following complaints, no major regulatory action was taken after the suspension period ended.

During the proceedings, the bench also expressed concern that such commercial use of private vehicles could cause significant revenue losses for the state. Furthermore, it places auto-rickshaw drivers and other transport operators at a disadvantage, as they are required to register their vehicles as commercial vehicles and pay the applicable taxes, the court stated.

Additionally, the court also suggested that the government consider granting a transition period to private vehicle owners engaged in commercial transport, allowing them to convert their vehicles into the commercial category. The court observed that such a move could help regulate the sector while also increasing government revenue. The state government has been directed to file its response next week.

The outcome of the case is expected to have a significant bearing on the future regulation of app-based transport services in Gujarat like Rapido, Ola and Uber. DeshGujarat