Are the Motor Vehicle Aggregator Guidelines 2020 binding on a State Government issuing an aggregator licence?

No. Under the first proviso to Section 93(1) of the Motor Vehicles Act 1988 the State Government "may follow" such guidelines as may be issued by the Central Government. The Guidelines which have been issued by the Central Government have a persuasive value; they are not mandatory. When the State Government formulates rules in pursuance of its power under Section 96 it may also bear the Guidelines in mind, but the ultimate decision is to be arrived at by the State Government, both on whether to grant a licence and on the formulation of rules.

Motor Vehicles Act, 1988 — s.93 — s.96 — Motor Vehicle Aggregator Guidelines, 2020 — cl.15 — Constitution of India, 1950 — Art.32 — Art.226 — Aggregator licence — Bike taxi — Motor Vehicles Act, 1988 — s.93 — Central guidelines persuasive, not mandatory — Held: The first proviso to Section 93(1) says the State Government "may follow" the guidelines issued by the Central Government. The Motor Vehicle Aggregator Guidelines 2020 therefore have persuasive value and are not mandatory, the ultimate decision on a licence resting with the State Government. (¶9) Motor Vehicle Aggregator Guidelines, 2020 — cl.15 — Written rationale for prohibition — Held further: Under clause 15(1) the pooling of non-transport vehicles may be provided by the aggregator unless prohibited by the State Government. The rationale for such a prohibition has to be specified in writing and accessible on its transport portal. (¶8) Constitution of India, 1950 — Art.32 — Art.226 — Alternate remedy — Liberty to challenge notification — Held further: A challenge to a notification never raised before the High Court will not be entertained under Article 32 where the alternate remedy under Article 226 is available. Liberty was granted to move the High Court uninfluenced by the impugned observations; petitions disposed of. (¶17, 20)

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