Several parties, including drivers, fleet operators, and cab aggregators, are concerned about an ongoing Supreme Court case regarding the legality of LMV drivers operating commercial vehicles without any additional endorsement because a reversal of an earlier decision could harm them.

In 2017, a split bench of the Supreme Court declared that holders of LMV licences should be able to operate transport or commercial vehicles weighing up to 7,500 kg unladen.

The Ministry of Road Transport and Highways issued a notification in 2018 to comply with the court ruling. Insurance firms challenged the decision before a three-judge panel, claiming that it jeopardized people's safety.

The panel submitted the petition to a five-judge constitution bench, which requested the ministry to submit its view on the matter at a hearing on July 20. On September 13, the final hearing is scheduled.

The Tamil Nadu Urimai Kural Driver Trader Union, a group representing 2,250 drivers in the southern state, filed a petition on July 16 to join the case, arguing that any decision that asks the drivers to apply for and get a commercial endorsement from the regional transport offices would render such cab drivers unworkable and inoperative.

Consequently, this could cause a short-term supply problem for cab aggregators like Ola and Uber, in addition to other commercial fleet operators. The group urged the Supreme Court to allow a moratorium of 1-2 years should it rule that the drivers need an additional commercial endorsement.

Siddharth Ladsariya, founder of Everest Fleet, which supplies cabs to Uber in seven cities, says, “Around 70 percent of its drivers stand to get affected by an adverse ruling in this case. In June, Uber led a $20 million funding round for the Mumbai-based fleet operator.”