Uber, Rapido licences suspended in Chandigarh for 6 months over rules violation

According to the administration, both companies failed to comply with the rules despite receiving repeated notices, show-cause notices and opportunities to present their case over more than a year.

In Short

• Suspension effective immediately under 2025 aggregator rules
• Violations include inadequate insurance coverage for drivers
• Similar six-month ban imposed on Ola earlier this year

The Chandigarh administration has suspended the aggregator licences of Uber and Rapido for six months over alleged violations of the city’s motor vehicle aggregator rules.

The suspension, effective from September 8, applies to Uber India Systems Private Limited and Rapido operator Roppen Transportation Services Private Limited.

The State Transport Authority (STA) acted under Rule 17 of the Chandigarh Administration Motor Vehicles Aggregators Rules, 2025.

According to the administration, the companies failed to comply despite repeated notices, inspections and hearings over more than a year. The alleged violations included inadequate health and term insurance for drivers, particularly bike-taxi captains, and failure to follow the notified fare structure.

The STA said the companies did not submit the required documents or satisfactorily address the concerns, leading to the six-month suspension.

Ola’s licence was also suspended for six months in June over alleged violations of the same rules.

In that case, the STA had received complaints concerning driver insurance and training, fare structures and the company’s subscription model. Ola operator ANI Technologies was first asked to comply with the rules in July 2025 and again directed to do so two months later.

A committee subsequently found that the company had vacated its local office nearly a year earlier without informing the authorities. The STA said Ola failed to address the violations despite repeated notices and meetings, prompting the suspension.

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