The Delhi government has issued a public notice saying carrying passengers on motorcycles would be a punishable offence in Delhi.
It also said that bike-taxi is a violation of the Motor Vehicles Act.
The transport department has banned the motorcycles and scooters used by taxi services such as Ola, Uber and Rapido.
Earlier, the transport department issued a warning to the service providers in Delhi NCR, stating that using private vehicles as commercial taxis violates the Motor Vehicles Act, 1988 and can attract a punishment of Rs 1 lakh. The Motor Vehicles Act of 1988 is in violation when two-wheelers are used for commercial purposes.
"It has been brought to the notice that two-wheelers having non-transport (private) registration mark/number are being used to carry passengers on hire or reward, which is a purely commercial operation and in violation of Motor Vehicles Act, 1988, and rules made thereunder," said a circular issued by the department.
The move will affect many customers who rely on two-wheelers operated in the names of Ola, Uber and Rapido amid the rising cabs fares. Many people prefer this affordable mode of transportation as bikes are more mobile in Delhi's traffic.
In a public notice, the department said that a fine of Rs 5,000 would be slapped on the first offence. If the offence is committed for the second time or subsequently, then a fine of Rs 10,000 will be charged and up to one year in jail.
Delhi traffic police department has already started checking bikes associated with Ola, Uber and Rapido. If the offence is repeated, the driving license of the driver will also get suspended for a minimum period of three years.
The move by the Delhi government comes after the Indian Supreme Court banned 'Rapido' services, a two-wheeler passenger services, in Maharashtra.