Ola, Uber, and Rapido told the Karnataka High Court that bike taxi services are legal under central law and the state’s lack of policy cannot justify a ban. They argue the single judge overstepped legal boundaries.
Bengaluru: On August 5, the Karnataka High Court is currently hearing a key appeal filed by bike taxi aggregators Ola, Uber, and Rapido, who are challenging a previous single judge’s order that directed them to stop their bike taxi services across the state until clear rules and regulations are made.
The matter is being heard by a Division Bench of Chief Justice Vibhu Bakhru and Justice C.M. Joshi.
Senior Advocate Arun Kumar, appearing on behalf of Ola, argued that the single judge’s decision went beyond the actual issue brought before the court.
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He explained that the main issue was only about the registration of bikes as transport vehicles and the requirement for obtaining a carriage permit. It was not about the fundamental rights of aggregators to run such services.
Another counsel strongly opposed the Karnataka government’s continued inaction, pointing out that no concrete steps had been taken to protect public interest since 2017.
He argued that the state’s refusal to allow bike taxis lacked legal basis and fairness.
“The executive power can’t be exercised contrary to the rules, the Act and someone’s fundamental rights,”
he said, adding that the state’s inaction could not be justified as public interest if it was not backed by a reasonable policy or legal provision. He further submitted,
“Here, from 2017 till today, the government has not taken any steps that have been taken in the interest of the general public, and if they had done so, we could have tested it on the anvil of being reasonable. They are not receiving any application to register a vehicle as a transport vehicle. They have also taken away our rights to seek carriage permit.”
Advocate Kumar stated,
“Single judge’s ruling went beyond the scope of the original issue which was only about registering a vehicle as a transport vehicle and obtaining a carriage permit not about the rights of aggregators.”
He further referred to the Motor Vehicles Act, saying it already has rules that allow contract carriage permits. The only restriction for giving these permits, he pointed out, is that the Central Government can set a cap depending on the population of the area.
“The Motor Vehicles Act includes provisions for contract carriage permits and notes that the only limitation on issuing such permits is based on a cap that the Central Government may impose considering the area’s population.”
After concluding his arguments, another lawyer appearing in the case told the court that in the absence of a clear policy by the Karnataka government, the Central Government’s guidelines actually allow white-board (non-commercial) bikes to be used as taxis.
He said the bike owners were ready to follow the rules by registering their bikes as transport vehicles and using yellow boards.
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The counsel stated,
“In absence of a state policy even Central govt guidelines permit white board bike taxis. They are willing to register bikes as transport vehicles and operate with yellow boards.”
He further said,
“Allowing bike taxis is under the Centre’s purview, and the state can’t restrict their right to operate simply because it hasn’t framed rules.”
Another lawyer added that if the state government is legally required to give contract carriage permits, then it cannot stop the aggregators from using their vehicles as transport vehicles.
“If the state govt. is bound to give contract carriage permit then they cannot stop the aggregators to use their vehicle as transport vehicle.”
A different counsel representing another bike aggregator company also made his submissions before the court. He criticized the state’s position, arguing that the so-called policy used to justify the ban was never even mentioned in the pleadings and that even if such a policy exists, it goes against the law.
He said,
“The policy is contrary to the statute itself and this was not even pleaded and hence the learned single judge erroneously held so.”
He added,
“Firstly it was erroneously held that it was a policy as it was not pleaded and even if there is a policy it is against the statute itself.”
The counsel highlighted how important bike taxis are for commuters in Bengaluru, especially in areas where metro connectivity is missing. He said bike taxis help people travel quickly and easily, and aggregators make it convenient to find and book bikes within a minute or two.
“Metro does not have connectivity everywhere. Bike taxi helped the commuters and was an easy way.”
“Aggregators will help in accessing which bike is available where. In a matter of time one or two minutes you get it.”
The lawyer also argued that proper rules by the state government could make sure that passengers are safe. Aggregators, he said, already check the background of their drivers. Without aggregators, no one will be responsible for passenger safety. He added that bike taxis are important to ease traffic in Bengaluru.
“If the State issues proper guidelines, it will ensure passenger safety. Aggregators always verify drivers’ antecedents. If there are no aggregators, who will do it? We have an incentive to ensure safety.”
“Bike taxis are crucial to reduce Bengaluru’s traffic congestion.”
Finally, he reminded the court that at one point the state had permitted electric bike taxis, which proves that even the government had earlier recognised their importance.
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“The fact that e-bike taxis were earlier permitted clearly shows the State itself knew they were necessary.”
The High Court has concluded the hearing for now and is expected to deliver a decision after considering all arguments. The outcome will likely impact how bike taxi services are regulated not just in Karnataka, but possibly across other Indian states as well.
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