InDrive banned in India’s Chandigarh for six months over rule violations

CHANDIGARH: Chandigarh’s State Transport Authority (STA) has suspended the licence of Indsystems IT Private Limited, the company that operates the ride-hailing app inDrive, for six months.

The suspension took effect immediately. During this period, inDrive cannot operate its car and bike-taxi services in Chandigarh.

The transport authority said the action was taken because the company allegedly failed to follow several rules under the Chandigarh Administration Motor Vehicles Aggregators Rules, 2025.

According to the STA, officials had repeatedly sent notices and instructions to the company, asking it to comply with the rules. However, the authority said several issues remained unresolved.

These included:

• Failure to introduce required measures for driver welfare.
• Failure to submit required compliance reports.
• Inadequate response to notices and communications from the Transport Department.
• Problems related to fares and other operating rules.
• Irregularities found during official inspections.

The authorities have also ordered drivers and vehicle owners working through inDrive to stop providing rides in Chandigarh immediately. They have been told not to accept bookings through the app during the six-month suspension.

Officials warned that anyone violating the order could face strict action, including fines and the impounding of vehicles.

The STA has also advised people in Chandigarh not to book inDrive rides during the suspension. Commuters have been asked to use other ride-hailing platforms approved by the Chandigarh Transport Department.

This is not the first action against a major ride-hailing company in Chandigarh. The authorities have also suspended the licence of ANI Technologies Private Limited, which operates Ola, for six months over alleged violations of the city’s transport rules.

The action shows that Indian authorities are increasing their monitoring of app-based taxi services. They are paying particular attention to driver welfare, fares, passenger safety, licensing, reporting and compliance with transport regulations.