The Chandigarh Administration has suspended Ola’s aggregator license for six months with immediate effect, citing repeated violations of regulatory norms and failure to comply with directions issued by the authorities. The move bars the ride-hailing platform from operating cab and bike taxi services in the Union Territory during the suspension period.
The action was taken against ANI Technologies, the parent company of Ola, after transport authorities concluded that the company had failed to comply with provisions of the Chandigarh Administration Motor Vehicles Aggregators Rules, 2025, despite multiple notices and opportunities to address concerns.
Why Did Chandigarh Suspend Ola’s Licence?
According to the State Transport Authority, several complaints were received from drivers and stakeholders regarding alleged non-compliance with mandatory requirements. The complaints included issues related to health insurance, term insurance, driver welfare measures, training programs, and fare-related practices.
Authorities said Ola was first directed in July 2025 to ensure compliance with the new rules and submit reports detailing corrective measures. Multiple meetings were later held with company representatives, but officials claimed the required responses were either delayed or not submitted.
A show-cause notice was eventually issued under Rule 17 of the Chandigarh Administration Motor Vehicles Aggregators Rules, 2025. Officials stated that, despite seeking additional time, the company did not submit a satisfactory response to the authority’s concerns.
Compliance Review Found Multiple Concerns
During inspections, authorities found that the company had relocated its Chandigarh office without informing the administration, which officials said violated licensing conditions under the aggregator rules.
Officials also alleged that the company’s local office address was non-functional during inspections conducted in May 2026. According to the authorities, these observations were included in the compliance review carried out under the Chandigarh Administration Motor Vehicles Aggregators Rules, 2025.
Another issue highlighted by authorities was Ola’s subscription-based driver model. The administration alleged that drivers were required to recharge prepaid subscriptions to continue operating on the platform, a practice that officials said was not aligned with the notified aggregator rules.
What The Suspension Means For Drivers And Riders
With the licence suspended, Ola cannot legally operate cab or bike taxi services in Chandigarh for the next six months. The administration has directed drivers attached to the platform not to accept ride bookings through the app during the suspension period.
Authorities have warned that any vehicle found operating through the platform despite the suspension could face legal action, including challans and possible impoundment. Drivers have also been advised not to attach vehicles to the platform while the order remains in force.
The Chandigarh Administration has also issued an advisory asking commuters not to book rides through the Ola app during the suspension period. Residents have been encouraged to use alternative authorised transport services to avoid inconvenience.
