CHANDIGARH: The Union Territory administration on Tuesday ordered a six‑month suspension of the licence of Indsystems IT Private Limited, which runs the inDrive ride‑hailing service, after finding the company in violation of regulatory requirements, officials said.
Immediate halt to operations
The order, issued by the state transport authority, bars the company from offering cab and bike‑taxi services in Chandigarh with immediate effect. Authorities said the decision follows repeated non‑compliance with the Motor Vehicles Aggregators Rules, 2025, and a failure by the company to respond to several notices about operational irregularities.
Officials directed all vehicle owners and drivers associated with inDrive to stop operating under the platform in Chandigarh and not to accept ride bookings via the application. The administration warned that vehicles found violating the directive will face legal consequences, including challans and impoundment.
Regulatory framework and alleged lapses
The Motor Vehicles Aggregators Rules introduced in 2025 set out standards that aggregators must follow on fare transparency, commission structures, driver onboarding, insurance coverage and other operational matters. According to officials, inDrive did not adhere to several provisions of the rules and failed to address queries raised by the transport department despite receiving multiple notices.
The administration's action comes nearly two months after it suspended the licence of another major aggregator, Ola, for similar breaches. The twin suspensions underscore a stricter enforcement approach by Chandigarh authorities towards digital cab platforms operating in the city.
Officials said inDrive had been served multiple notices over operational irregularities but had failed to respond.
What the order means for drivers and commuters
Drivers attached to the inDrive platform have been asked to immediately cease operations under the company within Chandigarh limits. The transport authority also urged the public not to book rides through the inDrive application during the suspension period to prevent inconvenience.
Commuters have been advised to use alternative aggregator services that are registered with the Chandigarh transport department. The administration did not specify a timeline for review or conditions under which the suspension could be lifted.
- Duration: Six months effective immediately.
- Company affected: Indsystems IT Private Limited (operator of inDrive).
- Reason cited: Non‑compliance with Motor Vehicles Aggregators Rules, 2025 and failure to respond to notices.
- Enforcement: Vehicles violating the order will be challaned and may be impounded.
Administrative stance and next steps
Transport department officials said the suspension order was issued after due process and formal notices. They emphasised that the rules are intended to ensure safety, fare transparency and accountability in aggregator operations. No financial penalties were mentioned in the order released on Tuesday.
The order instructs drivers and vehicle owners tied to the inDrive platform to disengage immediately from the service within the UT. It also warns of legal action for those who continue to accept bookings through the app.
Local impact and context
Chandigarh's action follows a broader national conversation about regulating app‑based transport services, with states and Union Territories increasingly using the 2025 rules to monitor fare policies, commission rates and driver welfare measures. For daily commuters in Chandigarh, the suspension may reduce platform choices and could increase demand on other registered services during the suspension period.
| Aspect | Implication |
|---|---|
| Drivers | Must stop operating under inDrive; risk of penalties if non‑compliant |
| Commuters | Advised not to book via inDrive; use alternate registered aggregators |
| Enforcement | Challans and impoundments for violations |
Authorities did not provide details on how many driver partners are affected or whether any interim measures will be offered to those dependent on earnings from the platform. The transport department has previously said that registration with the local authority is mandatory for aggregators operating in the UT.
The administration's firm approach signals heightened regulatory scrutiny of technology‑driven transport services in Chandigarh. It remains unclear when the company can seek reinstatement; officials indicated that compliance with the rules and satisfactory responses to the notices would be prerequisites for any reconsideration.
