The taxi hailing services or the ‘on-demand transport aggregating services’ will be now covered under Section 93 of the Motor Vehicles Act, 1988.
Under Section 93, the State Governments have the power to regulate such service providers.
The draft advisory was finalized for the State Governments in consultation with stakeholders.
After much havoc earlier by the State governments seeking consultation with the Transport Ministry for country-wide ban for the apps, last week, the had government put forth the new draft of Road Transport and Safety Bill 2015. According to the new bill the taxi hailing services will be defined as a “digital intermediary or marketplace for a passenger to connect with a driver having the requisite qualifications under the laws in India.”