The Transport Department has issued a notification imposing a ban on the issuance of new licenses and permits under the 'Rent a Cab' scheme, with retrospective effect from February 24, 2025. The decision, aimed at reducing traffic congestion and enhancing road safety, will apply across all regions covered by the scheme.
According to officials, the move comes in response to increasing concerns over road overcrowding, particularly in urban and tourist-heavy areas. The department said the proliferation of commercial cab services has contributed significantly to traffic snarls, parking shortages, and accidents.
"The decision is a proactive step to ensure safer and more sustainable road usage," a senior transport official said, adding that existing permits will remain valid and unaffected by the new order.
Transport unions and road safety advocates have welcomed the notification, while some operators expressed concern over the retrospective nature of the ban. The department is expected to issue further guidelines in the coming weeks regarding renewals and possible exemptions.