Frequent strikes, trade unions, meter tampering and poor service are some of the prominent features of auto rickshaw service in Delhi.' On the other hand, drivers usually complain that fare rate is not sufficient2 and Government and bureaucracy are.3 always eager to 'discipline' the errant rickshaws by providing SMS complaint service4 imposing very expensive Global Positioning System device (GPS) on drivers introducing smart card identification scheme5, heavy penaltieS6 and many others. Nothing has worked so far. What seems like a cultural problem or a jinx is not really difficult to understand, rather an obvious legal cum socio-economic problem. But this paper does not claim the obvious facts that all these problems are directly or indirectly the outcome of cap on the number of auto-rickshaws in the city. 7 This has already been reiterated in number of media reports and reports of Government Committees. Using these facts and a comparative approach, this paper argues that Auto-rickshaw sector too deserves economic liberalization like cycle-rickshaw sector. The only difference between the auto-rickshaw sector and cycle rickshaw sector is that while judicial activism led to liberalization of cycle-rickshaw sector, it led to permit system in the case of the latter.