In a major development, the Karnataka High Court on Friday lifted the ban on bike taxi services in the state, allowing operators to resume services.
The court also permitted the state government to impose necessary conditions in accordance with the law.
A division bench of Chief Justice Vibhu Bakhru and Justice C.M. Joshi allowed a batch of appeals filed by cab aggregators ANI Technologies (Ola), Uber, Rapido and others, challenging an earlier single-judge order that had directed bike taxi services to be halted in Karnataka until the state framed specific rules under the Motor Vehicles Act.
Quashing the April 2025 single-judge order that imposed the ban, holding that motorcycles used for bike taxi services fall within the definition of "transport vehicles" under the Motor Vehicles Act, 1988, the court, consequently, held that the state government cannot refuse or deny permits solely on the ground that motorcycles are not transport vehicles.
The bench observed that bike taxi operators are entitled to apply for contract carriage permits to operate motorcycles as bike taxis. While the state government is free to examine all aspects while considering such applications, permits cannot be denied merely because the vehicle in question is a motorcycle.
"Taxi owners are at liberty to file applications for registration of the vehicle as a transport vehicle. We direct the state government to consider such applications for registration of the owner of the vehicle as a transport vehicle and grant permission to operate as contract carriages," it said.
The bench further stated that the Regional Transport Authorities may impose such conditions as they consider necessary in accordance with law, having regard to Section 74(2) of the Motor Vehicles Act.
It also stated that aggregators are at liberty to file fresh applications and that such applications must be considered in accordance with the law and the observations made by the court.
Earlier, the court had questioned the state government's decision to impose a complete ban on bike taxis instead of regulating them. It observed that every trade is permissible unless regulated, and that bike taxi services cannot be kept outside the scope of commerce. It reminded the state of its obligation to frame a policy and noted that the court would only examine whether the policy is arbitrary, but would not interfere in policymaking.
The bench of Justice B. Shyam Prasad had, on April 2, 2025, ordered bike taxi service to be halted in Karnataka within six weeks. The state government had banned the service on June 16, 2025.
(With inputs from IANS)
