Karnataka High Court Expresses Inclination To Stay Bike Taxi Ban Over State's Failure To Frame Policy For Drivers

The Karnataka High Court on Thursday (September 25) orally expressed its inclination to the stay the order banning bike taxis in the State, noting that despite granting one month time the State government had not come with an appropriate policy concerning bike taxis.

For context, the high court in an earlier hearing asked the State if it can examine the issue on a policy level, deferring the matter by one month. The State had then said that it will take a "conscious decision" on the issue, however clarifying that it will only take a decision whether or not it should make a policy and if yes then what policy.

During the hearing today as the advocate general appearing for the State submitted that the bike aggregators were not complying with court orders and were plying bike taxis, a division bench of Chief Justice Vibhu Bakhru and Justice CM Joshi orally remarked:

"We are inclined to give a full-fledged stay at this stage. We had given one months time for government to come up with some policy...nothing is done and you come up with Gig workers (Act). Anyways we will hear it". 

The court was hearing appeals by bike taxi aggregators Rapido, Uber, OLA as well as others challenging a single judge order which held that bike taxis cannot operate in the state unless the State government issues relevant guidelines and rules under the Motor Vehicles Act.

During the hearing Advocate General (AG) Shashi Kiran Shetty appearing for the State submitted that the State has come out with Gig Workers Act who can use two wheelers for delivery purposes and registration is not required for them.

"In this even OLA/Uber and etc are included and two wheeler riders' interest have been taken care of. The petitioners have violated the court orders and running their operations," Shetty said.

The court however orally remarked that it had not granted a stay in the appeals. "We had clarified that you can take action," it said. 

The AG said that the petitioners are defying court orders and are in contempt. Meanwhile senior advocate Dhyan Chinnappa appearing for individual bike owners said, "...there is no bike stand now they have not allowed us registration, platforms like Uber/Ola are permitting us free service, if that is stopped we will loose". 

The court thereafter posted the matters for hearing on October 15 adding that it will try to finish the hearing on that day.

For context the single judge had in April ruled 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 court had then further said that the State's Transport Department cannot be given directions to register Motorcycles as Transport Vehicles or issue Contract Carriage Permits. For context, contract carriage permits are issued by state governments which permits a vehicle to be used for the transportation under a specific contract, usually for a fixed purpose.

It had further ordered the State government to ensure that all bike taxi operations cease to operate in six weeks. This date was extended till June 15. Thereby, Bike Taxis were to cease operations from June 16 in the State.

Case title: Uber India Systems Private Limited AND State of Karnataka and batch

Case No: WA 848/2025, WA 863/2025, WA 906/2025, WA 962/2025, WA 948/2025