Bengaluru Central MP PC Mohan has urged the state government to enforce the ₹35 minimum fare for app-based autorickshaws, pointing to steep fare increases following the Karnataka high court’s directive banning bike taxi services from June 16, sparking commuter distress and legal appeals seeking regulatory clarity. Following the Karnataka HC’s directive to end bike taxi services by June 15, Bengaluru commuters have faced fare hikes of up to 25% for autos (File photo)

“Following the Karnataka HC’s directive to end bike taxi services by June 15, Bengaluru commuters have faced fare hikes of up to 25% for autos,” Mohan said, highlighting how the withdrawal of low-cost bike taxis has impacted urban mobility.

The bike taxi ban originated from an April order by a single judge of the Karnataka high court, which stated that, “unless the State Government notifies relevant Guidelines under Section 93 of the Motor Vehicles Act, 1988 and Rules thereunder, the petitioners (Ola, Uber, Rapido) cannot operate as Aggregators offering Bike-Taxi Services.” The judge further held that “the State’s transport department cannot be given directions to register Motorcycles as Transport Vehicles or issue Contract Carriage Permits.”

On Tuesday, a division bench led by acting chief justice V Kameswar Rao and justice CM Joshi heard appeals filed by aggregators Ola, Uber, and Rapido, as well as two bike owners opposing the ban.

Senior advocate Dhyan Chinnappa, appearing for the bike owners, contended that the ban violates their constitutional right to carry on a lawful business. “I have a fundamental right to operate my business. If the law operates and you prevent it then it cannot be done. This is the grievance of the bike owners,” he told the court, as reported by LiveLaw.

He argued that Karnataka’s Aggregator Rules already include two-wheelers, and that the Motor Vehicles Act permits registration of two-wheelers as transport vehicles. “There is no restriction in contract carriage or transport carriage in law,” he said, adding that bike taxis operate legally in 11 other states.

PC Mohan, meanwhile, called on transport minister Ramalinga Reddy to clamp down on app-based auto aggregators that, he alleged, are bypassing the fare limits set by the Karnataka high court.

“In May 2024, the high court upheld the transport department’s November 2022 fare cap — ₹30 base fare + 5% service charge + 5% GST. Fares must not exceed this,” Mohan said. “Bengalureans have noticed a 25% hike in auto fares on ride-hailing apps in recent days. They continue to levy arbitrary charges such as surge pricing, pick-up fees, and tips, resulting in commuters paying well above the notified fares.”

“I urge the transport minister to direct the transport department to issue notices to all aggregators and ensure the fare notification is fully enforced. Enforcing regulations is a core government duty, and the transport department must uphold its responsibilities diligently,” he added.

During the hearing, Chinnappa also said the state cannot arbitrarily deny contract carriage permits to an entire category of vehicles. “A class refusal of registration (of all motorcycles) is absent in MV Act,” he told the court.

He further argued that the state’s recent withdrawal of the e-bike policy contradicts its current position. “There is complete contrast in the stand taken with regards to e-bike and now,” he said. “Everyone wants a cheapest and fastest mode of transport. A welfare state cannot simply say it will not allow you to operate.”

The matter is scheduled to be heard again on Wednesday at 2:30 pm.