Bengaluru, Jan 23 (NationPress) In a significant ruling, the Karnataka High Court has lifted the prohibition on bike taxi operations in the state, enabling service providers to recommence their activities.

The court additionally authorized the state administration to apply essential stipulations as mandated by law.

A division bench comprising Chief Justice Vibhu Bakhru and Justice C.M. Joshi accepted several appeals lodged by cab aggregators such as ANI Technologies (Ola), Uber, Rapido, and others, which contested a prior single-judge ruling that mandated a suspension of bike taxi services until the formulation of specific regulations under the Motor Vehicles Act.

By overturning the April 2025 single-judge ruling that enforced the suspension, which classified motorcycles used for bike taxi services as “transport vehicles” under the Motor Vehicles Act of 1988, the court determined that the state government cannot deny permits based solely on the classification of motorcycles.

The bench indicated that bike taxi operators are eligible to seek contract carriage permits to utilize motorcycles as bike taxis. Although the state government is entitled to review all pertinent factors while evaluating such requests, it cannot reject applications merely because the vehicle is a motorcycle.

"Taxi proprietors have the freedom to submit requests for vehicle registration as transport vehicles. We instruct the state government to evaluate these registration requests and grant authorization to operate as contract carriages," the bench remarked.

The bench further clarified that the Regional Transport Authorities may impose conditions they deem necessary in accordance with the law, considering Section 74(2) of the Motor Vehicles Act.

Moreover, it stated that aggregators are permitted to submit new applications, which must be assessed as per legal stipulations and the court's remarks.

Previously, the court had scrutinized the state government's choice to enforce a total ban on bike taxis instead of opting for regulation. It highlighted that all trades are permissible unless explicitly regulated, asserting that bike taxi services cannot be excluded from commercial activities. The court reminded the state of its duty to establish a policy, noting that while it would assess whether the policy is arbitrary, it would refrain from interfering in policy formulation.

A bench led by Justice B. Shyam Prasad had, on April 2, 2025, directed the cessation of bike taxi services in Karnataka within a six-week timeframe. The state government had executed a ban on June 16, 2025.