Bike taxis banned in Karnataka: High Court gives six-week deadline for suspension

In a major setback for bike taxi aggregators, the Karnataka High Court on April 2 ordered the suspension of all bike taxi services in the state within six weeks. The court ruled that companies like Rapido, Ola, and Uber cannot operate bike taxis unless the state government issues the necessary guidelines under Section 3 of the Motor Vehicles Act, 1988.

Court's directive and reasoning

ustice B M Shyam Prasad, delivering the verdict, stated that bike taxis would remain suspended until the Karnataka government formulates clear regulations. The court directed the state government and the transport department to ensure compliance, giving them three months to introduce a regulatory framework for bike taxis.

Also read: Karnataka Deputy CM DK Shivakumar urges Centre to confer Bharat Ratna on Shivakumara Swami

“The transport department cannot be directed to register motorcycles as transport vehicles or issue contract carriage permits for such services until appropriate government regulations are in place,” Justice Prasad clarified in his ruling.

The judgment cited a 2019 expert committee report that examined the impact of bike taxis on traffic and safety, highlighting the need for well-defined policies before such services can continue.

Legal challenge and state’s stance

The ruling came in response to petitions filed by bike taxi aggregators, who had sought a directive for the transport department to allow two-wheelers to be registered as transport vehicles and issue the required permits under the Motor Vehicles Act. However, the Karnataka government opposed the plea, arguing that bike taxis were illegal, as two-wheelers with white number plates are not permitted to operate commercially.

Also read: Karnataka heatwave: Government revises office hours as temperatures rise in 9 districts

Senior Advocate Arun Kumar, representing one of the parties, pointed out that Ola had launched its bike taxi services only in April 2024. However, the court maintained that all bike taxi aggregators must comply with the order and cease operations within the six-week period.

Regulatory clarity and future roadmap

The Karnataka High Court stressed the need for a well-defined regulatory framework before bike taxi services can resume. The government now has three months to draft and implement guidelines that will govern bike taxi operations in the state. Until then, companies like Rapido, Uber, and Ola will have to halt their bike taxi services, significantly impacting urban transportation options.

The ruling underscores the legal ambiguity surrounding bike taxis in India and sets a precedent for other states grappling with similar regulatory concerns. The industry now awaits the government's response, as the new guidelines will determine the future of bike taxis in Karnataka.

Also read: Waqf Amendment Bill sparks fiery debate in Lok Sabha: Key highlights from leaders' speeches (WATCH)