The taxi driver was spotted by two students who then reported it to council wardens.
The driver was reportedly a private hire taxi driver licensed with Bradford Council.
A spokesperson for the Council said: “An incident has been reported to the taxi licensing service.
"We cannot comment on individual investigations but all reports of incidents of Bradford Council-licensed private hire or Hackney Carriage drivers behaving in illegal or unacceptable ways are investigated and the appropriate action is taken.”
A petition calling for Erewash cabbies to be allowed to have fully-tinted windows in their taxis has been rejected over fears that vehicles could be used to enable the abuse of vulnerable children and adults.