Karnataka High Court Directs Bike Taxi Aggregators to Cease Operations in the State Within Six Weeks
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Synopsis
On April 2, the Karnataka High Court ordered bike aggregators, including Rapido, to stop operations in the state within six weeks. Justice B.M. Shyam Prasad emphasized the need for regulatory clarity before such services can resume.
Key Takeaways
- Karnataka High Court mandates cessation of bike taxi operations.
- Rapido, Uber, and Ola are affected by the ruling.
- Six-week timeline set for halting services.
- Regulatory framework needed for future operations.
- Previous interim relief has been revoked.
Bengaluru, April 2 (NationPress) In a significant ruling, the Karnataka High Court mandated on Wednesday that bike aggregators, including Rapido bike taxis, must cease their operations in the state within a period of six weeks.
The order was issued by a bench led by Justice B.M. Shyam Prasad, who instructed the state government and the Transport Department to ensure that bike taxi operations are terminated within the specified timeframe in Karnataka.
"Regulatory clarity is essential before permitting these services to continue," the court emphasized.
The court directed bike taxi aggregators such as Rapido, Uber, Ola, and others to suspend their services within the allotted six weeks.
Justice Prasad, while dismissing the petitions, remarked that the court cannot compel the state to formulate regulations, nor can it mandate the registration of non-transport vehicles as transport vehicles.
"The Transport Department is not obligated to register motorcycles as transport vehicles or issue contract carriage permits for such services until appropriate governmental regulations are established," the bench stated.
The bench turned down petitions from Roppen Transportation Services Private Limited, the owner of Rapido, ANI Technologies which operates Ola, and Uber Technologies which runs Uber, all seeking legal recognition for bike taxi services through vehicle registration permits.
The petitioners had also requested that the relevant authorities establish a legal framework for bike taxis. Rapido had sought an injunction against government interference in its operations.
The court clarified that bike taxi aggregators cannot function in the state until the government publishes pertinent guidelines under Section 3 of the Motor Vehicles Act, 1988, along with necessary regulations.
Previously, in April 2022, a bench led by Justice Jyoti Mulimani had granted interim relief to bike taxi aggregators, instructing the authorities not to take any coercive measures against them.
This interim relief has been in effect till now, allowing bike taxi operations to continue.
This recent decision is viewed as a substantial setback for the bike taxi aggregator application Rapido.
