The Jammu and Kashmir Motor Vehicle Department has issued a show-cause notice to the online cab operators Ola and Uber in the Union Territory for non functional operations. This is despite being granted first Motor Vehicle Aggregator License in 2023.
The show-cause notice was served to ANI Technologies Pvt Ltd (OLA) and Uber after the company failed to begin its services in the Union Territory within the stipulated timeframe, despite being granted the first Motor Vehicle Aggregator.
The show cause notice to Ola stated, “Whereas License to act as Motor Vehicle Aggregator in accordance with the Jammu and Kashmir Motor Vehicle Aggregator Rules, 2023 was granted to you vide License No. 0001 dated 21st September 2023 subject to fulfilling of statutory requirements including but not limited to “Registered Rent Deed”, “Board Resolutions” and further conditions that “License shall be valid from date of issuance and shall be activated only after completion of all statutory formalities and operational within 06 months from the date of issuance”. You were advised to complete all necessary formalities to operationalize the license within stipulated time”.
“Your Company Branch Office in Jammu i.e. M/s ANI Technologies Private Limited (OLA), ABC Building, New Plot , Jammu, Near Krishna Building (Looks Salon), J&K was found non-operational. No such company premises existed / was traceable” it stated.
The department had directed Ola to explain their position in the matter and reasons to remain non-operational despite lapse of one year of License.
“In light of above, you have violated sub-rule 5 of rule 8 and rule 14 of S.O 453 dated 29.08.2023. In view of aforementioned facts, you are hereby called upon to explain in writing within fifteen (15) days from the date of issuance of this notice, that why the License to act as Motor Vehicle Aggregator granted to you shall not be revoked” it stated.
“Kindly note that if you fail to respond to this show cause notice within the stipulated time it shall be presumed that you have nothing to say in your defence and the license to act as Motor Vehicle Aggregator in your favour shall be cancelled without any further notice” the notice to Ola stated.
A similar notice was issued to Uber cabs.