India, April 30 -- The state cabinet on Tuesday gave its nod to a new policy to regulate the activities of app-based taxi aggregators. The policy, framed following a directive from the Supreme Court, allows for levying of penalties on both drivers and passengers for cancellation of rides without valid reasons. It also caps surge pricing at 1.5 times the base fare and encourages electric vehicles and car-pooling.

The policy is based on recommendations of a committee led by retired IAS officer SK Shrivastava. The committee was appointed by the state government following a February 2023 Supreme Court order and it submitted its report in April 2024.

The policy mandates that all aggregators must have an office in Maharashtra, install GPS tra...