Ride Cancellation Fine in Maharashtra: New Rules for App-Based Taxis
The Maharashtra government has introduced strict penalties to stop the growing trend of Ride Cancellation Fine in Maharashtra in app-based taxi services. These new rules apply to both drivers and passengers, aiming to build a fairer and more reliable ride experience for everyone.
Drivers Will Pay ₹100 for Unjustified Cancellations
Under the revised Aggregator Guidelines, any driver who cancels a ride without a valid reason will face a fine of 10% of the ride fare, with a maximum limit of ₹100. This policy encourages drivers to accept bookings responsibly and helps avoid last-minute inconvenience for passengers.
Passengers Will Also Face Penalties
Importantly, the government has included passengers in these rules. If a rider cancels a booked trip without justification, they will be charged 5% of the fare, capped at ₹50. As a result, both parties are now accountable, which promotes a more respectful and dependable ride system.
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Part of a National Push for Regulation
This state policy aligns with a central directive issued by the Ministry of Road Transport and Highways on November 26, 2020. The directive urged all states to frame individual regulations for app-based transport aggregators. Maharashtra responded quickly and became one of the first states to finalize its guidelines, which officially came into effect in February 2024. Preparations had started earlier in October 2023.
Registered Companies Must Follow Strict Guidelines
The policy applies only to registered transport companies, which must operate under a cooperative model and share all relevant data with the transport department. In addition, these companies are required to submit regular reports and fully cooperate with authorities to ensure transparency and safety in their services.
Maharashtra Sets an Example for Other States
By tackling frequent cancellations, boosting passenger trust, and closing regulatory gaps, Maharashtra is setting a benchmark for others to follow. As more states begin forming their own rules, Maharashtra’s early action offers a solid example of effective governance in the ride-hailing sector.