Delhi government has initiated legal proceedings against redBus and Shuttl, online bus booking platform, for “issuing” tickets for buses which are running illegally in the national capital.
A top official of the transport department said that a case has been registered against ‘redBus’ under provisions of the Motor Vehicles Act and its hearing is going on in a city court. Earlier this year, Shuttl landed former transport minister Gopal Rai in a controversy after it was alleged that Rai was reportedly favoring the aggregator.
“It is engaged as an agent for the booking of tickets for public service buses and also for soliciting customers for such vehicles. But any agent like redBus cannot issue tickets. The department is further inquiring into the operation of buses at this portal,” the official said.
According to the report states that the enforcement wing of the transport department has penalized 52 Shuttl buses in the last few weeks. The buses plied by Shuttl have contract carriage permits. They are not allowed to pick up passengers or issue tickets under provisions of the Motor Vehicles Act. Only stage carriage buses are allowed to do so.
A spokesperson from redbus said, ” redBus is merely an “intermediary” and serves as a marketplace that connects bus operators and consumers.The bus operators directly bill in the customers and redBus only acts as a technology provider for both.”
Commenting on the same topic, a Shuttl spokesperson, “At Shuttl, we believe that commute should be reliable, affordable and dignified, and we exist to take the pain away from the daily commute. We are fully compliant with the law and, want to clarify that the action taken by authorities is absolutely arbitrary and without any basis.”
According to Delhi Government, this year about 1,147 buses has been impounded by the transport department for illegally plying in the city. Out of these, 1,105 were interstate diesel-run buses.
Both the companies, however, claimed that the bus operators listed on its website provide an undertaking that they have the requisite permits and licenses to operate the buses and it is not in redBus’ jurisdiction to physically verify or enforce this. Read more about Indian Startup Ecosystem.