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Is parking busines model of motorists legal in India


04-Jul-2023 (In Criminal Law)
We are a Pvt Ltd firm building a parking app. Private parking contractors in cities often charge higher than govt mandated fees to motorists. While this is illegal there's next to no enforcement. We are creating an app where our users can get assured parking at higher than Govt mandated rates (eg fee of Rs. 30/hr for assured space in peak time as opposed to Rs 10/hr govt rate). The contractors cannot legally enter into this contract with the motorist but we can since we are not a govt contractor. We charge the Rs 10/hr as parking fee and the remaining Rs 20/ hr as convenience fee. On the convenience fee, we pay the applicable GST, and pay almost 80% back to the contractor as royalty for using our platform. Essentially, we become a channel where the contractors can get a higher price without breaking the law, and users can get assured availability at a premium. Does this model violate IPC or economic laws? Can we be held/shut down for propagating black marketing if we use this model?
Answers (3)

Answer #1
960 votes
To do this you need to seek government's permission over writing as well as all municipalities who provide parking facilities should be approached too. If the concerned government clears and allows you to carry on your business then your chances of falling into greater trouble lessens. I know someone who is bringing up such module.
Answer #2
831 votes
Making of app and providing of services is not fetch any criminality subject to compliance of all the norms of the business which you are going to adopt as per the present prevailing law in our country. Hence before taking any further steps get in touch with an advocate of repute who may guide you for the same.
Answer #3
917 votes
Look. It is very good and interesting question as well as we the general people faces such type of illegal parking charges from different zone in our towns.
But regarding the question of your parking fees model, whether it violate IPC or economic Law. I hereby suggest you that, before implementation of your model, first find out the Rules and regulations by which said Parking zone will be alloted for charge. If said Rules and Regulations or Govt. Order can permit you to lonch such type of site. Then it does not hampered any economic law.

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