General information, not legal advice. Checked on 25 October 2026. Rules change and states adopt them on their own timelines, so your state transport department's latest notification is the final word.
Why people say carpooling is illegal
Under India's Motor Vehicles Act, a vehicle that carries passengers for "hire or reward" needs a transport permit. That's why taxis and autos are registered as commercial vehicles, with yellow number plates. Private cars have white plates and no such permit. So when a car owner takes money from strangers for seats, transport departments and police have treated it as running an unlicensed taxi.
Taxi and auto unions have also pushed back on carpool apps, which they see as competition that skips the cost of permits and commercial insurance.
What the central rules allow
The Ministry of Road Transport and Highways' Motor Vehicle Aggregator Guidelines, first issued in 2020, opened a door: ride apps could pool private (non-transport) cars unless a state prohibits it in writing. The 2020 version capped this at four intra-city rides a day and two inter-city rides a week per car, required insurance of at least ₹5 lakh for co-riders, and gave women the option to pool only with women.
The ministry revised the guidelines in July 2025 and advised states to adopt them by 1 October 2025. States can adopt them as they are or add their own conditions, so what applies to you depends on your state.
Maharashtra: allowed, through registered apps
In 2025, Maharashtra's cabinet approved carpooling in private vehicles through apps and websites registered with the state transport department, as part of its aggregator policy. As reported:
- only registered platforms can offer carpooling;
- each driver can make at most 14 pooling trips a week;
- fares are regulated by the Regional Transport Authority, can't exceed comparable cab fares, and cover costs like fuel, tolls and insurance;
- all drivers and riders must be insured, and platforms must verify everyone's identity;
- women can choose women drivers and co-passengers.
So in Maharashtra, carpooling through a registered app that follows these rules is allowed. Taking money for seats informally, through an unregistered app or a WhatsApp group, isn't covered by that permission.
Other states: it varies
In Karnataka in 2023, after complaints from taxi drivers, the transport department said carpool apps using white-plate cars were illegal and warned of fines. The transport minister then said there was no ban: friends, neighbours and colleagues may carpool, but carpooling for profit through an app needs a licence and commercial (yellow-board) vehicles. Chandigarh's draft aggregator policy goes further and doesn't allow private vehicles on aggregator platforms at all.
If you carpool outside Maharashtra, check your state's current position before money changes hands.
What doesn't raise the question
- Giving friends, family or colleagues a lift with no money involved.
- Taking a regular taxi, cab or auto, which has its own commercial permit.
- Several passengers sharing one taxi they've hired, and splitting what it costs between themselves.
Where cab sharing fits
Cab sharing sidesteps the private-car question. On Sobat, nobody drives anyone: people going the same way meet at one pickup point, one of them books a normal Ola, Uber or auto, and they split the fare. The vehicle is a commercial cab with its own permit and driver, booked the usual way. Sobat doesn't own, run or price any vehicle, and never handles the fare.
Next: how to split a cab fare fairly.
Sources
- The Quint: the 2020 Motor Vehicle Aggregator Guidelines, including private-car pooling
- SCC Online: Motor Vehicle Aggregators Guidelines 2025
- MediaNama: Maharashtra's Aggregator Cabs Policy 2025
- Pune Pulse: Maharashtra legalises private carpooling via registered apps (May 2025)
- The Week: carpooling apps not banned, but need legal permission, says Karnataka minister (2023)
- The Tribune: Chandigarh to regulate app-based cab aggregators