In a significant decision, the Karnataka High Court has lifted the ban on bike taxi services in the state, enabling operators to restart their services. The court has also granted permission to the state government to impose necessary conditions as per the law. A division bench comprising Chief Justice Vibhu Bakhru and Justice C.M. Joshi accepted appeals from cab aggregators like Ola, Uber, and Rapido, challenging a previous order that had suspended bike taxi services until specific rules were framed under the Motor Vehicles Act.
The court overturned a single-judge order from April 2025 that had enforced the ban, ruling that motorcycles used for bike taxis are classified as “transport vehicles” under the Motor Vehicles Act, 1988. Consequently, the state government cannot reject permits solely on the basis of motorcycles not being considered transport vehicles. Bike taxi operators are now allowed to seek contract carriage permits for operating motorcycles as taxis, with the state government having the authority to review all aspects of such applications.
The bench emphasized that taxi owners can apply for vehicle registration as transport vehicles, directing the state government to process these applications and grant permission for operating as contract carriages. Regional Transport Authorities are empowered to impose necessary conditions in line with the law, as per Section 74(2) of the Motor Vehicles Act. The court also mentioned that aggregators can submit fresh applications, which should be evaluated based on legal provisions and court observations.
Previously, the court had criticized the state government for imposing a blanket ban on bike taxis instead of regulating them. It highlighted that all trades are permissible unless regulated, emphasizing that bike taxi services should not be excluded from commercial activities. The court stressed the state’s responsibility to formulate a policy and clarified that it would only review the policy for arbitrariness without interfering in the policy-making process.
