Aggregator License Suspended Following Welfare Violations
The Chandigarh Transport Department has suspended the aggregator license of Ola Cabs (operated by ANI Technologies Private Limited) for a period of six months, effective from June 17, 2026. The regulatory action was taken due to Ola’s persistent failure to comply with the Chandigarh Administration Motor Vehicles Aggregators Rules, 2025. Specifically, authorities cited the platform’s failure to provide mandatory driver welfare benefits, including health and term insurance, and non-compliance with required driver training modules.
Additionally, the department raised objections to Ola’s implementation of an illegal prepaid subscription model for its drivers and its failure to establish and maintain a physical local office in Chandigarh to address commuter grievances. The administration noted that Ola had repeatedly ignored official show-cause summons and notices, leaving regulators with no choice but to enforce the suspension. The ban is slated to remain in force until December 2026.
Enforcement Measures and Warnings to Competitors
During the suspension, the Chandigarh administration has officially advised residents not to book rides through the Ola app and has directed all associated drivers to halt bookings within the Union Territory. Authorities have warned that any vehicles found operating on the platform during the ban face strict legal penalties, including vehicle impoundment and heavy fines. In a related move, other major aggregators such as Uber, InDrive, and Rapido have been given 15 days to submit compliance reports or face similar regulatory actions.
