Karnataka HC order bicycle taxi operators like Rapido, Ola to suspend services within 6 weeks

In a significant legal development, the High Court of Karnataka has decided that bicycle taxi aggregators can only work in the state if the Government formulates and apply appropriate orientations.

The judgment, issued on Wednesday, forced the Karnataka government to introduce regulations under section 3 of the 1988 vehicle law, together with the relevant rules before these services operate legally, reported Indian Express.

In addition, the court has trained the State Transport Department to ensure that all bicycle taxi operations reach a full stop within six weeks. This directive will affect the major players like Rapido, Ola and Uber, who must immediately comply with the order.

Deadline for six weeks for compliance

The justice of BM Shyam Prasad, who presided over the case, said that companies offering taxi services for bicycle should suspend their operations within the stipulated time. Meanwhile, the state government has received three months to write and implement the regulatory framework required for the sector.

“The transport department cannot be directed to register motorcycles as transport vehicles or to issue contractual transport permits for such services until there are no appropriate government regulations,” said Justice Prasad during the verdict’s delivery.

During the meeting, the main lawyer Lat Kumar, representing one of the petitioners, stressed that Ola recently launched only bicycle taxi services in April 2024. While she acknowledged this, the court claimed that all petitioners must respect the decision and temporarily interrupt the operations.

Also, the decision referred to a report by the 2019 Expert Committee, which analyzed the impact of bicycle taxis on traffic and safety. The Court emphasized the importance of clear regulations before allowing these services to work again.

In his final observations, the Prasad justice noted that the resistance of progress could lead to stagnation, emphasizing: “a person who denies the change becomes the architect of decomposition.”