The Chandigarh State Transport Authority (STA) on Tuesday suspended the aggregator licence of Indsystems IT Private Limited, the operator of the inDrive platform, for a period of six months, prohibiting the company from offering cab and bike‑taxi services in the city with immediate effect.
Administration cites non‑compliance with 2025 rules
According to an order issued by the STA, the action was taken after officials found that the company had failed to comply with key provisions of the Chandigarh Administration Motor Vehicles Aggregator Rules, 2025. The administration said inDrive did not respond to repeated notices issued over operational irregularities.
Authorities identified lapses in several areas required under the 2025 aggregator rules, including driver welfare provisions, insurance and training requirements, submission of compliance reports and adherence to prescribed fare structures, the order stated. The suspension follows similar disciplinary action taken against ANI Technologies Private Limited (Ola) earlier this year for related violations.
Directives to drivers, vehicle owners and the public
The STA has directed all vehicle owners and drivers associated with the inDrive platform to immediately stop operating under the company within Chandigarh and not to accept ride bookings through the inDrive application during the suspension period. The order warned that vehicles found operating in breach of the suspension will be challaned and may be impounded.
- Drivers and vehicle owners must cease accepting bookings via the inDrive app in Chandigarh with immediate effect.
- Vehicles operating in violation of the order will face challans and possible impoundment.
- Commuters have been advised not to book rides through the inDrive app and to use other authorised aggregator platforms registered with the Chandigarh transport department.
Officials emphasised that the suspension is an enforcement measure under the STA's authority to ensure compliance with statutory aggregator norms designed to protect commuters and drivers alike.
What the order lists
| Area | Issue cited |
|---|---|
| Driver welfare | Failure to implement mandatory health/term insurance and training provisions |
| Compliance reporting | Non‑submission of required compliance reports and inadequate response to communications |
| Fare and operations | Deviations from prescribed fare structures and other operational irregularities |
The order did not detail the specific timeline given to the company to remedy the breaches prior to suspension, but officials said multiple notices were served and remained unanswered.
Local impact and context
The suspension has immediate implications for daily commuters and for drivers who used the inDrive platform to source passengers in Chandigarh. With two major aggregators — Ola and inDrive — facing six‑month suspensions earlier this year, commuters are being asked to rely on alternative authorised aggregators registered with the Chandigarh Transport Department.
Transport authorities have urged the public to plan travel accordingly and to prefer platforms that meet registration and compliance requirements. Drivers dependent on aggregated bookings may need to migrate temporarily to other registered aggregators or arrange for private operations in line with transport regulations.
Officials reiterated that enforcement is intended to ensure that aggregator operations conform to statutory protections such as insurance cover for drivers, mandated training and transparent fare mechanisms. The STA said strict legal action will be initiated against anyone violating the suspension order.
There was no immediate public response from Indsystems IT Private Limited or representatives of the inDrive app as of the time the order was issued.
The administration's move underscores ongoing regulatory scrutiny of app‑based mobility providers since the rollout of the Motor Vehicles Aggregator Rules, 2025, which sought to standardise aspects of fare setting, commission, onboarding and welfare obligations across the sector.
