Chandigarh suspends Ola's aggregator license for 6 months over violations

Chandigarh's State Transport Authority has suspended Ola's aggregator license for six months. The action follows allegations of non-compliance with aggregator rules, including issues with insurance, fares, and driver training.

The State Transport Authority (STA), Chandigarh, has suspended the aggregator licence of ANI Technologies Private Limited, the parent company of Ola, for a period of six months with immediate effect over alleged violations of the Chandigarh Administration Motor Vehicles Aggregators Rules, 2025.

The suspension order was issued by Nitish Singla, PCS, Secretary, State Transport Authority, UT Chandigarh, who is also the Licensing Authority under the Aggregator Rules. According to the order, ANI Technologies had been granted an aggregator licence on January 15, 2024, under the Motor Vehicle Aggregator Guidelines, 2020, which subsequently came under the ambit of the Chandigarh Administration Motor Vehicles Aggregators Rules, 2025.

Alleged Violations and Repeated Warnings

The STA stated that it had received multiple complaints from cab drivers and other sources alleging that the company was not complying with several provisions of the rules. The complaints included issues related to health insurance, term insurance, driver training and fare structure.

Authorities said the company was first asked through a letter and email dated July 8, 2025, to ensure compliance with the rules and submit a report. A meeting under the chairmanship of the Secretary (Transport), UT Chandigarh, was also held on September 3, 2025, where the company representatives were directed to comply with the provisions of the Aggregator Rules.

Subsequently, a committee constituted on September 24, 2025, to verify compliance reportedly found that ANI Technologies had shifted its local Chandigarh office nearly a year earlier without informing the authorities. The order further stated that despite repeated opportunities and meetings, the company failed to comply with the notified rules.

Investigation Finds Further Non-Compliance

Another meeting was convened on May 7, to discuss compliance issues, but no representative from the company attended. The STA also issued a notice on May 11, seeking an explanation regarding alleged non-compliance with notified fare rates and the Aggregator Rules, directing the company to respond within seven days. However, the authority claimed that no reply was received.

The order additionally referred to complaints regarding the company's subscription model, alleging that cab operators attached to the platform were required to recharge prepaid subscriptions, which the authority termed a violation of the Aggregator Rules, 2025.

A committee that reviewed the matter also visited the local address provided by the company on three occasions May 1, May 8 and May 19, and reported that the office had been vacated approximately a year ago without any intimation to the authorities.

Acting on the committee's recommendations, the Licensing Authority invoked Rule 17 of the Chandigarh Administration Motor Vehicles Aggregators Rules, 2025, and suspended the company's licence with immediate effect for six months. (ANI)

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