Chandigarh suspends Ola's aggregator licence for 6 months over rule violations
Chandigarh, June 17
The State Transport Authority, Chandigarh, has suspended the aggregator licence ofTechnologies 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.
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. 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
Reader Comments
I'm a regular Ola user in Chandigarh and I'm worried about how this will affect commuters. But honestly, rules are rules. You can't just shift your office without telling anyone, ignore multiple notices, and then not even show up for meetings. Ola has gotten too arrogant. Hope they learn their lesson and come back with proper compliance.
Good decision but I hope this isn't just a publicity stunt. The aggregator rules were notified in 2025 and Ola has been violating them since day one. What took the authorities so long? And why only 6 months? Should be permanent until they show genuine willingness to follow the law. Driver ka insurance and training are non-negotiable yaar.
Impressive move by Chandigarh. In many Western cities, these apps have turned into de facto monopolies that ignore local regulations. It's refreshing to see a smaller city take a stand. That said, I hope the authorities are also working on improving public transport options so people aren't left stranded during this suspension.
As a cab driver in Chandigarh, I can tell you this is a huge win for us. Ola's subscription model was killing us - we had to pay upfront every month just to get rides, and then they'd take 30% commission on top of that. No insurance, no training, nothing. The company representatives never even came to meet us when we complained. Thank you Transport Authority for finally listening! 🙏
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