Maharashtra Imposes 5x Penalty On Drivers Cancelling Critical Rides

The Maharashtra government has introduced a new policy to regulate app-based taxi services, imposing a fivefold penalty on drivers who cancel rides to airports, railway stations, and hospitals after accepting a booking.

This provision, introduced under the Maharashtra Motor Vehicle Aggregator Rules, 2026, aims to curb last-minute cancellations on time-sensitive trips and improve the reliability of app-based taxi services.

Under the new rules, a driver who cancels a ride after accepting it will be liable to pay a penalty equal to 10 per cent of the total fare, capped at ₹100. However, for bookings to airports, railway stations, and hospitals, the penalty will be five times the normal driver cancellation penalty.

The penalty amount collected from drivers will be credited directly to the rider's app account. The government has also directed aggregators to build app features that discourage drivers from cancelling such trips.

The rules seek to balance accountability between both drivers and passengers. A rider who cancels a trip without a valid reason will have to pay a penalty equal to five per cent of the total fare, capped at ₹100, which will be credited to the driver's account.

In cases where a cab develops a mechanical fault during a trip, the aggregator must arrange an alternate vehicle within 30 minutes for rides within municipal limits and within 60 minutes for intercity journeys exceeding 100 kilometres.

Failure to do so will attract penalties under the rules. The fivefold penalty is expected to provide relief to passengers travelling for time-sensitive purposes, as last-minute cancellations on airport, railway station, and hospital trips have been a frequent complaint among users of app-based cab services.

Many drivers accept bookings but later cancel if they get a better fare, which is especially frustrating when you're rushing to catch a flight, a train, or trying to reach a hospital.

Officials believe the stricter cancellation norms will improve passenger confidence and make app-based transport services more dependable. However, the effectiveness of the new provisions will ultimately depend on how strictly aggregators implement the rules and how effectively they are monitored by the state government.

The new policy is a welcome step for passengers who have been facing issues with last-minute cancellations. It is expected to bring more accountability and reliability to app-based taxi services in Maharashtra.

With the introduction of this policy, the Maharashtra government aims to provide better services to its citizens and improve their overall experience with app-based taxi services.

The policy is a significant step towards regulating the app-based taxi industry and ensuring that passengers receive the services they deserve.

It remains to be seen how effectively the new provisions will be implemented and how they will impact the app-based taxi industry in Maharashtra.

The government's efforts to regulate the industry and protect the interests of passengers are commendable, and it is hoped that the new policy will bring about positive changes in the app-based taxi services in the state.