Mumbai News: MMRTA Orders Strict Action Against Autos, Taxis & App Cabs For Non-Compliance With Govt-Prescribed Fares

In a strong move to rein in arbitrary fare practices, the Mumbai Metropolitan Region Transport Authority (MMRTA) has issued a stern directive to ensure compliance with government-prescribed fares for auto-rickshaws, taxis, and app-based vehicles operating in the region.

In a letter addressed to the State Publicity Department on September 25, the MMRTA reiterated that it is illegal to charge fares that deviate from the rates set by the Regional Transport Authority (RTA) or the limits specified for app-based aggregators.

The letter lays out clear conditions for dynamic pricing by app-based transport providers. During periods of low demand, fares must not fall below 25% of the RTA-determined base fare to avoid unfair competition with traditional taxis. Conversely, during peak demand, surge pricing is capped at 1.5 times the base fare. Additionally, drivers must receive at least 80% of the fare charged to passengers.

“These conditions regarding fare determination, as specified in the Government Resolution, are mandatory for all vehicles operating under app-based aggregators,” the letter states. “Any deviation from these rules will be considered a violation,” the letter added.

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The letter also mentioned that action has recently been taken by the competent authority against 7,152 auto-rickshaw and taxi permit holders for violations under the Motor Vehicles Act and the conditions laid out by the authority. A cumulative penalty of Rs 1.60 crore has been recovered from these offenders.

Furthermore, the authority cracked down on illegal app-based two-wheeler services in the region. A total of 263 private two-wheelers operating without permits for passenger transport were caught, and fines totaling Rs 3.88 lakh were imposed. FIRs have also been filed against certain aggregators at Azad Maidan, Samta Nagar, and Amboli police stations for illegally facilitating such services.

However, despite repeated warnings, some app-based aggregators have not yet made the required adjustments to their fare systems. As a result, driver unions announced the implementation of the Cool Cabs per-kilometre fare of Rs 22.72 for app-based aggregator taxis, while proposing their own base fares: Rs 28 for basic hatchbacks, Rs 31 for sedans, and Rs 34 for premium cars.

However, according to the State Transport Department, until the new policy is formally notified, all app-based taxis are required to charge the government-notified fares—Rs 20.66 per km for non-AC cabs and Rs 22.72 per km for AC (Cool Cabs).

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"Some passengers agree to pay as per RTO (Regional Transport Office) rates, while others prefer to stick to the fares displayed on the mobile app. This discrepancy has led to arguments between passengers and drivers. To prevent escalation, they are charging the amount displayed on the app,” said R.N. Yadav, an app-based cab driver.

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