Ola Services Suspended in Chandigarh: State Transport Authority Halts Operations for 6 Months Over Regulatory Violations
Chandigarh’s State Transport Authority has suspended Ola’s aggregator licence for six months, citing persistent violations of the 2025 Motor Vehicles Aggregators Rules. Key breaches include failure to provide mandatory driver insurance, illegal subscription models, and operating without a functional local office.
In a significant regulatory move, the State Transport Authority (STA) of Chandigarh has suspended the aggregator licence of ANI Technologies Pvt. Ltd., the parent company of Ola, for a period of six months with immediate effect. The decision follows a series of alleged violations of the Chandigarh Administration Motor Vehicles Aggregators Rules, 2025, effectively halting the company's cab and bike taxi services across the city.
Nitish Singla Issues Regulatory Non-Compliance and Violations
The suspension order, issued by Nitish Singla, Secretary of the State Transport Authority, cites a "wilful failure" by the company to adhere to mandatory regulatory provisions despite repeated warnings. According to the authority, the decision was prompted by multiple complaints from drivers and stakeholders regarding critical gaps in compliance, including:
- Driver Welfare: Failure to provide mandatory health and term insurance coverage and requisite driver training.
- Operational Irregularities: Violations related to fare structures and the implementation of a subscription-based model that required drivers to recharge prepaid balances, which was deemed contrary to the 2025 Rules.
- Administrative Omissions: A committee investigation revealed that the company had relocated its local Chandigarh office nearly a year ago without notifying the authorities, and inspections in May 2026 confirmed that the registered office was non-functional. Cricket Canada Suspended With Immediate Effect by ICC Following Serious Membership Breaches.
History of Unanswered Notices
The administration’s action follows a prolonged period of correspondence. Since July 2025, the STA had issued several notices and held multiple review meetings to urge the company to rectify its operational practices. However, authorities claim that ANI Technologies consistently failed to furnish compliance reports or attend mandatory review sessions, including a crucial meeting scheduled for 7 May 2026. 'Our Services Will Soon Be Better': Ola CEO Bhavish Aggarwal Shares Video of Happy Customers, Promises To Scale Hyperservices Across India.
Following the expiry of these opportunities, the Licensing Authority invoked Rule 17 of the Chandigarh Administration Motor Vehicles Aggregators Rules, 2025. During the six-month suspension, Ola is barred from accepting ride bookings in the city. The administration has explicitly warned that any operation during this period will invite strict legal action and has advised the public to avoid using the platform to prevent inconvenience.
(The above story first appeared on LatestLY on Jun 18, 2026 12:08 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
