Ola services suspended in Chandigarh for 6 months cab and bike taxi services halted

Ola services stopped in Chandigarh:  In a major regulatory action against ride-hailing platform Ola, the State Transport Authority (STA), Chandigarh, has suspended the aggregator licence of ANI Technologies Private Limited, the company's parent entity, for six months with immediate effect over alleged violations of the Chandigarh Administration Motor Vehicles Aggregators Rules, 2025.

The suspension order was issued by Nitish Singla, PCS, Secretary, State Transport Authority, UT Chandigarh, who also serves as the Licensing Authority under the Aggregator Rules.

According to the order, ANI Technologies was granted an aggregator licence on January 15, 2024, under the Motor Vehicle Aggregator Guidelines, 2020. Following the notification of the Chandigarh Administration Motor Vehicles Aggregators Rules, 2025, the company became subject to the new regulatory framework.

The STA stated that it had received several complaints from cab drivers and other stakeholders alleging that Ola was not complying with various provisions of the Aggregator Rules. The complaints primarily pertained to health insurance coverage, term insurance benefits, driver welfare measures, mandatory driver training and fare structure-related issues.

Acting on these complaints, the authority issued a letter and email to the company on July 8, 2025, directing it to ensure compliance with the rules and submit a compliance report. A subsequent meeting chaired by the Secretary (Transport), UT Chandigarh, was held on September 3, 2025, where company representatives were instructed to address the shortcomings and comply with the notified regulations.

The matter took a serious turn when a committee constituted on September 24, 2025, to verify compliance reportedly found that ANI Technologies had shifted its Chandigarh office nearly a year earlier without informing the authorities, a requirement under the licensing conditions.

The committee's findings raised concerns about the company's adherence to regulatory obligations and prompted further scrutiny by the transport department.

According to the order, despite being given multiple opportunities to comply, the company allegedly failed to rectify the deficiencies. Another meeting was convened on May 7 this year to discuss compliance issues; however, no representative from the company attended the meeting.

The STA also issued a notice on May 11 seeking an explanation regarding the alleged non-compliance with notified fare rates and provisions of the Aggregator Rules. The company was directed to submit its response within seven days. However, the authority claimed that no reply was received within the stipulated period.

The order further referred to complaints regarding Ola's subscription-based business model. Authorities alleged that cab operators attached to the platform were required to periodically recharge prepaid subscriptions to continue operating through the app.

The transport department viewed this practice as being inconsistent with provisions of the Chandigarh Administration Motor Vehicles Aggregators Rules, 2025, and cited it as one of the grounds for regulatory action.

A committee tasked with examining the matter reportedly visited the local address provided by the company on three occasions — May 1, May 8 and May 19. During these visits, officials found that the office premises had been vacated approximately a year earlier and that no formal intimation regarding the relocation had been provided to the authorities.

Based on the committee's recommendations, the Licensing Authority invoked Rule 17 of the Chandigarh Administration Motor Vehicles Aggregators Rules, 2025, and ordered the suspension of the company's aggregator licence for six months with immediate effect.

In a separate public notice, the Chandigarh Administration advised cab owners not to attach or operate vehicles through the Ola platform during the suspension period. Drivers have been warned against accepting ride bookings through the application, while commuters have been advised not to use the platform to avoid inconvenience.

The administration warned that vehicles found operating through Ola in violation of the suspension order could face challans, impoundment and other legal action.