By Sharveya Parasnis
Licensing For Aggregators:
Aggregators will have to apply for a license on a central government portal with an application fee set by the state government. Eligible candidates must be registered under the Companies Act, 2013, the Limited Liability Partnership Act, 2008, or must be a co-operative society of drivers or vehicle owners under the Co-operative Societies Act, 1912.
The fee for the grant of a licence is Rs. 5 lakh, Rs. 25,000 for renewal (once every five years) and Rs. 25,000 for noting a change of address. Aggregators must also provide a security deposit of Rs. 10 lakh if they have up to 100 buses or 100 other vehicles, Rs. 25 lakh if they have up to a 1,000 buses or 10,000 other vehicles, and Rs. 50 lakh if they have more than that.
The State Government may suspend an aggregator’s licence if it receives a complaint, after conducting an inquiry and giving the aggregator a hearing within ten days. The period of suspension may extend to three months. Grounds for suspension include failure to ensure passenger or driver safety, fare-related violations such as misuse of dynamic pricing or improper fare sharing, breach of driver contracts, violation of these guidelines, safety lapses causing accidents, financial irregularities, or any other reason deemed appropriate by the government.
Once a licence is suspended, the aggregator must immediately halt all operations. Before the suspension period ends, the aggregator must prove that it has resolved the issues after which the government may allow it to resume operations for a probationary period.
The government can also cancel an aggregator’s licence if it commits a fresh violation within three financial years of a suspension, or commits a serious offence endangering passenger or driver safety.
Driver-Related Compliances:
The aggregator has to carry out an induction-programme for all drivers. The programme must be of least 40 hours for drivers, combining in-person and virtual sessions. The course must train drivers in using the aggregator’s app, understanding relevant laws and responding to emergencies. It must also cover topics such as safe and fuel-efficient driving, vehicle maintenance, conduct and behaviour, terms of the driver-aggregator agreement, and include special modules on gender and disability sensitivity. The aggregator must upload the training structure on the designated portal. In addition, the aggregator cannot prohibit the drivers from operating with multiple platforms.
Drivers must have a driving licence, a valid bank account and no convictions in the past three years for offences such as driving under the influence of drugs/alcohol, sexual offences, fraud, or acts endangering public safety. Each driver must undergo a medical fitness examination, psychological assessment, and police verification at least seven days before onboarding. A formal contract must be executed between the aggregator and the driver in the state language, and the standard terms must be published online. These conditions must remain in force for the entire duration of the aggregator’s licence.
For driver welfare, the aggregator must provide health insurance of at least Rs. 5 lakh and term insurance of at least Rs. 10 lakh per driver, with annual increases as notified by the Central Government. These provisions are subject to the Social Security Code, 2020, once implemented. Aggregators must also conduct annual refresher training sessions and ensure that drivers with performance ratings below the 5th percentile undergo quarterly training to continue offering services. If a passenger files a complaint against a driver, the aggregator must complete an inquiry within three days and inform the passenger of the outcome before taking any action.
Vehicle-Related Compliances:
The aggregator must ensure that all motor vehicles operated by onboarded drivers comply with specific regulatory requirements. Each vehicle must have valid registration, a Certificate of Fitness, a third-party insurance policy, a pollution-under-control certificate, and display the registration mark as per the Central Motor Vehicle Rules (CMVR). All applicable taxes and dues must be paid, and the vehicle must not have any unpaid challans for traffic offences. The vehicle must display a copy of the driver’s licence and the vehicle permit in a clearly visible location.
Vehicles must be have a functional Vehicle Location Tracking Device with a panic button connected to the aggregator’s control room and the State’s integrated command and control centre. Child lock mechanisms must be disabled, and vehicles must include a manual override for central locking where applicable. Additionally, vehicles must carry a fire extinguisher and a first-aid kit.
Aggregators must not onboard vehicles that are more than eight years old from their initial date of registration and maintain updated records of each vehicle.
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