“Can Number Of Autos, Taxis Be Limited?”: Bombay HC Asks State's Transport Commissioner To Decide Challenge Against Open Licensing Policy

The Bombay High Court recently ordered Maharashtra's Transport Commissioner to decide whether the 'open licensing policy' for autorickshaws and taxis–which has been questioned by an autorickshaw union–can be stopped so as to limit the number of autos and taxis in the State.

The bench was hearing a petition filed by Pune-based Sawkash Authorickshaw Union, which contended that because of open licensing or open permit given to the auto-rickshaw drivers–as per a 2017 policy–there has been a significant increase in the number of auto-rickshaws on the roads, which has affected the business of the existing auto-rickshaws as they are not getting proper work. 

A division bench of Justices Girish Kulkarni and Advait Sethna while orally observing that this may lead to 'monopoly' however, prima facie opined that the instant issue pertains to a 'policy' and the same can be decided by the State. 

"Prima facie in our opinion it appears to be a matter of policy, if the petitioner is of the opinion that the policy is arbitrary or in any manner illegal or it is prejudicially affecting the petitioner and/or the society at large, it is for the state government to take a decision on the representation as made by the petitioner. In the above circumstances we direct the Transport Commissioner, State of Maharashtra - respondent no.2 to hear the petitioner on the representation as made by the petitioner and take an appropriate decision and the same be communicated to the petitioner," the bench said in its March 25 order. 

The petitioner Union sought implementation of the February 2008 order passed by the Central government, directing all the States to follow a ratio of 800 auto-rickshaws and 400 taxis per one lakh population.

Advocate Akshay Deshmukh, appearing for the petitioners, said, "The States are bound by this February 2008 order and they cannot say they will not adhere to it. Neither can they keep deferring implementation of this order for years altogether."

The petitioners pointed out that the State had in July 2017 initiated the 'open licensing' policy by which there were no limit on the number of licences or permits to be issued. However, this, according to the petitioners, should have been stopped within a year or two and cannot be permitted to go on like this, as it is prejudicial to the business of the existing autorickshaws. 

According to the petitioner Union, it had even written a letter to then Chief Minister Eknath Shinde on March 3, 2023 urging that open auto rickshaw license policy for five years ought to be recalled as it has also resulted in the increase in vehicular traffics on the roads. 

The letter, which is part of the petition, highlights the ordeal of the existing autorickshaw drivers, whom the Union has claimed to have availed loans  on the said vehicles and because of no business as they hardly get customers, they are facing huge problems and sometimes even the loan companies forfeits their vehicles for non-payment of instalments. 

"The petitioner has set out all its grievances in the representation made by the petitioner to the Regional Transport Officer dated 22 May 2023 there is also representation made to the Chief Minister as also Transport Minister and Deputy Chief Minister, State of Maharashtra dated 31 March 2023, that the open auto rickshaw license policy for five years ought to be recalled," the bench noted. 

Since it involves a policy decision, the bench asked the Commissioner to decide the petitioner's representation. 

The bench further disposed of the plea stating that this exercise be undertaken within four weeks and asked the petitioner to approach the office of the Commissioner on April 1. 

Case Title: Sawkash Autorickshaw Union vs State of Maharashtra (Writ Petition 6331 of 2024)

Citation: 2025 LiveLaw (Bom) 117

Counsel for Petitioner: Advocates Akshay Deshmukh, Sanket Kadam and Sumit Chandhari

Counsel for State: Assistant Government Pleader MS Bane

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