Justice MGS Kamal allowed the cab aggregators to operate auto services with a base fare as per government rules (Rs 30), besides permitting them to charge an extra 10 per cent plus applicable taxes (GST). The Karnataka High Court Friday provided interim relief to ride-hailing apps Ola and Uber, and Rapido, directing the state government to not take any ‘coercive’ steps against the companies until a fair-pricing mechanism for auto services was put in place.
Justice MGS Kamal allowed the cab aggregators to operate auto services with a base fare as per government rules (Rs 30), besides permitting them to charge an extra 10 per cent plus applicable taxes (GST).
The high court has also given 15 days to the government to come up with the fare mechanism for auto services operated by cab aggregators, after taking into account all the stakeholders in the issue. The hearing of the case was adjourned to November 7.
Meanwhile, Uber in a press statement said: “We welcome today’s court order, which recognises that auto drivers have the right to operate using aggregator platforms. It also recognises that platforms like Uber can charge a booking fee, which allows them to cover their costs and continue to provide their services. E-hailing autos are thriving in Bengaluru because of the value it brings to drivers and riders, who prefer it because of the upfront pricing, the lack of haggling, and the safety features that come with the app.”
It also added: “Commission caps threaten the viability of this vibrant e-hailing sector, which will impact the tens of thousands of auto-drivers who rely on it for their livelihoods and will result in the shrinking of this fledgling category. We will continue to engage with the government to find ways of regulating the sector in a way that allows for riders, drivers, and platforms to benefit from technology that has truly transformed urban mobility.”
The Karnataka State Road Transport Authority issued a notice to cab aggregators last Wednesday, for ‘illegally’ operating auto services and for charging high rates purportedly in violation of government rates capped for autos. The government had contended that auto-rickshaws were not covered by the licence issued under the Karnataka On-Demand Transportation Technology Aggregator Rules, 2016.
The government banned app-based auto services starting October 12, but cab aggregators continued to provide the services. The department has also clarified that a penalty of Rs 5,000 per vehicle for a first-time offence will be levied on cab aggregators in case three-wheelers are operated.