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NTL Cabs gets a green signal from Delhi

Chennai based NTL Call Taxi has become the first company to receive a green signal from the Delhi transport authorities to operate under the Radio Taxi Scheme on Friday. However, license applications of three other companies including Uber, TaxiForSure and Ola Cabs are still to be cleared.

All the companies had applied for a license but the government sent them “deficiency memos” outlining gaps in their applications. According to a government official, only NTL responded so far with the clarifications which culminated in a letter of intent being issued to them.

NTL has been in operation since 1999 in Tamil Nadu and is now seeking expansion in cities such as Delhi and Bangalore. It has a fleet size of around 3,000 cars. The company will now have to furnish a bank guarantee with seven days before it gets a formal go-ahead.

Though most of the cab aggregators have been operating in the capital without a license and defying ban orders, the department sent ‘deficiency memos’ to these firms on January 24.

According to the authorities, companies such as Uber and Taxi For Sure have not submitted an affidavit stating they follow the Motor Vehicles Act, 1988, along with the Information Technology Act, 2000. While its taxis are governed by the Motor Vehicles Act, the web-based application comes under the purview of the Information Technology Act, the transport authority claims.

However, companies are arguing that they are better governed by the Information Technology Act as it is a technology platform and not a taxi company. The delay in their responding to the transport authorities notices could be perhaps due to this clause. Aprameya R, Co-founder and Director at TaxiForSure had earlier told Business Standard, “We are working on the clarifications sought by them and we are in the process to submit the same.”


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