The Bombay High Court has directed Maharashtra's Transport Commissioner to decide on the challenge against the open licensing policy for autorickshaws and taxis in the state. This order came in response to a petition filed by the Pune-based Sawkash Autorickshaw Union, which raised concerns about the unlimited issuance of permits leading to excessive competition and business difficulties for existing auto drivers.
The petitioner argued that the 2017 policy, which allowed an unrestricted number of licenses for auto-rickshaws, has significantly increased their numbers on the roads. As a result, existing autorickshaw owners are struggling to get sufficient business, leading to financial strain and, in many cases, difficulty in repaying vehicle loans.
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"Prima facie in our opinion it appears to be a matter of policy. If the petitioner believes that the policy is arbitrary, illegal, or prejudicial to the public interest, the State Government must take a decision based on the representation submitted by the petitioner," the bench stated.
Court’s Directives
A division bench comprising Justices Girish Kulkarni and Advait Sethna emphasized that policy matters should be addressed by the state government. However, considering the grievances of the petitioners, the court directed the Transport Commissioner to hear their concerns and take an appropriate decision. The Commissioner is required to communicate the decision to the petitioners within four weeks.
The bench also referred to a February 2008 order issued by the Central Government, which mandated a specific ratio of 800 auto-rickshaws and 400 taxis per one lakh population. The petitioners insisted that the state must adhere to this directive instead of allowing unchecked growth in auto-rickshaw numbers.
Petitioners' Arguments
Advocate Akshay Deshmukh, representing the Sawkash Autorickshaw Union, contended that the state cannot ignore or indefinitely delay implementing the 2008 directive. The petitioners highlighted that in July 2017, the Maharashtra government introduced the open licensing policy, which led to a sharp rise in auto-rickshaw numbers. They argued that the policy should have been discontinued within a few years instead of remaining in force indefinitely.
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The union further claimed that they had previously written to former Chief Minister Eknath Shinde on March 3, 2023, urging a rollback of the five-year open auto-rickshaw licensing policy. The letter also pointed out that the policy has worsened traffic congestion and significantly impacted drivers who had taken loans for their vehicles.
The Court’s Observations
"The petitioner has set out all its grievances in the representation made to the Regional Transport Officer dated 22 May 2023. Similar representations were also submitted to the Chief Minister, Transport Minister, and Deputy Chief Minister of Maharashtra on 31 March 2023, seeking a review of the open licensing policy," the bench noted.
The bench recognized the financial struggles of existing autorickshaw drivers who, due to increased competition, are unable to secure enough customers, leading to loan defaults and even vehicle confiscation by lending institutions.
Next Steps
Considering the urgency of the matter, the court directed the Transport Commissioner to complete the review process and communicate the decision within four weeks. Additionally, the petitioner has been asked to present their case before the Transport Commissioner on April 1, 2025, at 2:30 PM.
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The case, titled Sawkash Autorickshaw Union vs. State of Maharashtra (Writ Petition No. 6331 of 2024), has now been disposed of with all contentions left open for further deliberation by the government authorities.
