Road Ministry Clarifies Legal Status Of Bike Taxis

On the legal status of 'bike taxi', the road transport ministry has clarified that motorcycles fall within the definition of 'contract carriage' as per the Motors Vehicles Act, 1988.

A contract carriage, according to the MV Act, is a vehicle carrying passengers for hire under a specific agreement.

The Ministry of Road Transport and Highways, in an advisory to states, said that it has been brought to its notice that certain states/UTs are, while processing applications for grant of permits, taking the view that 'motorcycle' is not eligible to ply under contract carriage or operate as a transport vehicle.

"It is clarified that as per section 2(28) of the MV Act, vehicles having less than four wheels fitted with an engine capacity exceeding 25cc are also included within the definition of motor vehicles. Hence, 'motorcycles' shall fall within the ambit of Section 2(7) of the Act," the advisory notification said.

The contract carriage agreement involves renting an entire vehicle for a fixed price, based on either distance or time, with or without a specific route.

The advisory further said all the states/UTs are advised to accept and process applications for contract carriage permits for motorcycles in accordance with the provisions of the MV Act.