India's Chandigarh suspends inDrive licence for six months over regulatory violations

CHANDIGARH: The State Transport Authority (STA) in India has suspended the aggregator licence of Indsystems IT Private Limited, which operates the ride-hailing platform inDrive, for six months with immediate effect over alleged violations of regulatory requirements and non-compliance with the Chandigarh Administration Motor Vehicles Aggregators Rules, 2025.

The suspension prohibits the ride-hailing company from operating its cab and bike-taxi services in Chandigarh during the period of the order, Indian media reported.

According to the STA, the action followed repeated notices and directions issued to the company regarding compliance with the applicable aggregator rules. Authorities cited several alleged lapses, including failure to implement mandatory driver-welfare measures, non-submission of required compliance reports and inadequate response to communications from the Transport Department.

The regulator also flagged issues relating to prescribed fare structures and other operational requirements, along with irregularities reportedly identified during inspections.

Under the order, drivers and vehicle owners associated with the inDrive platform have been directed to immediately cease operations under the company in Chandigarh and not accept bookings through the application during the suspension period.

The transport authorities have warned that violations of the suspension order could result in strict enforcement action, including challans and impounding of vehicles.

The STA has also advised commuters not to book rides during the suspension period and to use other aggregator platforms authorised by the Chandigarh Transport Department.

The action against the company follows a similar six-month suspension imposed on ANI Technologies Private Limited, which operates Ola, over alleged non-compliance with the city’s aggregator regulations.

The Chandigarh Administration’s action comes as Indian authorities continue to tighten regulatory oversight of app-based mobility platforms, particularly in areas including driver welfare, licensing, fares, safety, reporting and operational compliance.