A TAXI driver accused of indecently assaulting a woman passenger was arrested on suspicion of a similar offence weeks after being allowed to carry on working.

Zaheer Arshad, 28, of Richmond Hill Street, Accrington, was arrested after an allegation that he assaulted an 18-year-old woman in the back of his Ford people-carrier in Baxenden on February 4.

He was bailed by police but not charged and a loophole in the law allowed him to go back to his private hire job with CB Radio Cars in Accrington.

Just weeks later it is alleged that he re-offended. This time he was accused of attacking a 43-year-old woman in Oswaldtwistle, again in the back of his vehicle, at around 3am on March 11.

He has now been charged with two offences of indecent assault.

Police said that they tried to ensure that Arshad had his licence suspended by Hyndburn Council after the first offence.

But Hyndburn Council said that the law allowed him to carry on working as he had appealed against its decision to suspended him.

It added that a change in legislation this week meant that suspended drivers were now banned, even if they appealed.

Det Sgt Mick Cross, of Accrington CID, said: "We informed Hyndburn Council of our concerns after we first arrested Arshad.

"We felt that his licence should be suspended."

He said that Arshad was originally released on bail rather than being charged by police after discussions with the crown prosecution service.

He said: "It was felt that further inquires were needed to gather more evidence."

A spokesman for Hyndburn Council said: "You can be assured that we take our responsibility to protect the travelling public very seriously and that we would not hesitate to act decisively and suspend or remove a licence whenever this is necessary.

"I would emphasise that we always work very closely with the police in all cases of this sort to determine the most effective timing of any action.

"Anybody suspended prior to this week could continue to drive if they lodged an appeal.

"As a result of a change in legislation anybody whose licence is suspended as of this week could not continue to drive pending any appeal."

Iqbal Abid, from Hyndburn Taxi Association, said that drivers had a right to earn a living and should not be suspended if they had not been charged with an offence.

He said: "It is a very difficult situation because you are innocent until proven otherwise.

"As a taxi driver you only earn when you work and you cannot take away someone's livelihood if that person has not been charged."

When he appeared before Hyndburn magistrates Arshad did not enter a plea to the charges. He was remanded in custody to appear at Preston Crown Court.

The boss at CB Radio Taxis, who are based in Church Street Accrington, Abdul Naved-ul-Hassan, was unavailable to comment.