Karnataka: Ola, transport department standoff may end on Monday as company told to respond to notice
TNN | Updated: Mar 24, 2019, 13:09 IST
The department had issued a showcause notice to Ola on February 15.
BENGALURU: The deadlock between the transport department and cab aggregator Ola over compliance with licensing rules is likely to end on Monday. The department, which has suspended Ola’s licence for six months for illegally operating bike taxis, has summoned the company to respond to the notice.
Transport commissioner VP Ikkeri said: “The State Transport Authority (STA) will take a decision on Monday after examining Ola’s response. STA had suspended the licence after Ola violated the Karnataka On-Demand Transportation Technology Aggregator (ODTTP) Rules.” Ikkeri added that they have seized more than 250 bike taxis so far. “How can they illegally operate bike taxis in the city without taking permission from the department,” he asked.
The department had issued a showcause notice to Ola on February 15. The aggregator on March 5, 2019 responded to the notice but the department didn’t find the reply satisfactory. This means the company will have to respond to the STA again.
According to the ODTTP Rules, “Once a licence is suspended or cancelled, the aggregator has to surrender it to STA within three days of receiving cancellation/suspension order and should immediately stop operations.”
While Ola continued to operate its services on Saturday, Ikkeri said they have decided not to take action against cabs till Monday. “We will take action against vehicles after examining Ola’s response when representatives come here to surrender the licence on Monday”. Asked about the sudden action just before the Lok Sabha elections, he maintained: “It has nothing to do with the polls. We had issued the showcause notice in February itself.” While the commissioner maintained no action would be initiated till Monday, the Koramangala RTO on Friday issued notices to two Ola cabs for operating without the aggregator licence.
STA had issued the six-month suspension notice on March 18 to ANI Technologies, which operates Ola cabs. Responding to a query on another firm, Rapido, operating bike taxis since 2016, he said: “We will issue a notice to them as well.”
Ola may have to pay Rs 5,000-10,000 fine
Sources in the transport department said the issue is likely to be resolved after Ola pays a fine, anywhere between Rs 5,000 and Rs 10,000, for operating bike taxis. “STA may warn the aggregator for operating bike taxis illegally and Ola will have to give an undertaking that it won’t do so anymore. If we seize vehicles, it will only affect drivers and inconvenience passengers. Though the notice was prepared on March 18, it was issued only on March 22 after getting approval from higher-ups. But now there is public outrage over issuing the order just before elections,” said a transport department official who do not want to be named.
Ola obtained the aggregator licence, valid up to June 19, 2021, from the department in 2016. “This notification is unfortunate and we look forward to an opportunity to address these concerns directly with state officials to find a solution for our drivers and millions of Ola users in Karnataka,” Ola had said on Friday.
Will resolve matter: Priyank
Social welfare minister Priyank Kharge said he will interact with the chief minister and deputy CM to resolve the issue. “Our Govt will maintain a healthy balance between investors, industries, consumers & welfare within the ambit of law (sic),” he tweeted.
Many driver associations has urged the transport department not to stop Ola’s cab and auto services. Kiran Gowda of Karunada Rajya Taxi Drivers and Owners Association, said: “If the department wants to initiate punitive action, let it be against bike taxis. But, cab and auto services shouldn’t be discontinued. The ban will affect thousands of drivers and their livelihood,” he rued. However, some taxi associations like the JD(S) transport wing are in favour of the ban.
Transport commissioner VP Ikkeri said: “The State Transport Authority (STA) will take a decision on Monday after examining Ola’s response. STA had suspended the licence after Ola violated the Karnataka On-Demand Transportation Technology Aggregator (ODTTP) Rules.” Ikkeri added that they have seized more than 250 bike taxis so far. “How can they illegally operate bike taxis in the city without taking permission from the department,” he asked.
The department had issued a showcause notice to Ola on February 15. The aggregator on March 5, 2019 responded to the notice but the department didn’t find the reply satisfactory. This means the company will have to respond to the STA again.
According to the ODTTP Rules, “Once a licence is suspended or cancelled, the aggregator has to surrender it to STA within three days of receiving cancellation/suspension order and should immediately stop operations.”
While Ola continued to operate its services on Saturday, Ikkeri said they have decided not to take action against cabs till Monday. “We will take action against vehicles after examining Ola’s response when representatives come here to surrender the licence on Monday”. Asked about the sudden action just before the Lok Sabha elections, he maintained: “It has nothing to do with the polls. We had issued the showcause notice in February itself.” While the commissioner maintained no action would be initiated till Monday, the Koramangala RTO on Friday issued notices to two Ola cabs for operating without the aggregator licence.
STA had issued the six-month suspension notice on March 18 to ANI Technologies, which operates Ola cabs. Responding to a query on another firm, Rapido, operating bike taxis since 2016, he said: “We will issue a notice to them as well.”
Ola may have to pay Rs 5,000-10,000 fine
Sources in the transport department said the issue is likely to be resolved after Ola pays a fine, anywhere between Rs 5,000 and Rs 10,000, for operating bike taxis. “STA may warn the aggregator for operating bike taxis illegally and Ola will have to give an undertaking that it won’t do so anymore. If we seize vehicles, it will only affect drivers and inconvenience passengers. Though the notice was prepared on March 18, it was issued only on March 22 after getting approval from higher-ups. But now there is public outrage over issuing the order just before elections,” said a transport department official who do not want to be named.
Ola obtained the aggregator licence, valid up to June 19, 2021, from the department in 2016. “This notification is unfortunate and we look forward to an opportunity to address these concerns directly with state officials to find a solution for our drivers and millions of Ola users in Karnataka,” Ola had said on Friday.
Will resolve matter: Priyank
Social welfare minister Priyank Kharge said he will interact with the chief minister and deputy CM to resolve the issue. “Our Govt will maintain a healthy balance between investors, industries, consumers & welfare within the ambit of law (sic),” he tweeted.
Many driver associations has urged the transport department not to stop Ola’s cab and auto services. Kiran Gowda of Karunada Rajya Taxi Drivers and Owners Association, said: “If the department wants to initiate punitive action, let it be against bike taxis. But, cab and auto services shouldn’t be discontinued. The ban will affect thousands of drivers and their livelihood,” he rued. However, some taxi associations like the JD(S) transport wing are in favour of the ban.
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