'Not Permitted Bike Taxis To Operate, State Can Take Action Without Harrassing Individual Taxi Owners': Karnataka High Court Clarifies

The Karnataka High Court on Friday clarified that it has made no observations in its order passed on Wednesday (August 20) permitting aggregators to operate Bike taxis in the state.

A division bench of Chief Justice Vibhu Bakhru and Justice C M Joshi were informed by the Advocate General Shashi Kiran Shetty that aggregator apps have started the business (biketaxis) soon after the order passed by the court.

Following which the bench said “We have given no orders, if they have started their business, you can take whatever action you want.”

Shetty said “Before we take action, it is my duty to inform the court.” To which the bench said “We only said don't take precipitative action against individual taxi owners. As far as aggregators are concerned, we have given no observations, since you are considering a larger policy at least individuals who are operating you will not precipitate against them.”

Following which a counsel for an appellant submitted that after the order individual bikes have been seized. Shetty replied saying “It may not be correct; we will not do it.”

The court then added “Don't harass individuals. We have clarified.”

On Wednesday the Karnataka Government had informed the High Court that a decision in regards to bike taxis will be taken at the highest level in the government. Notably, the next day it was reported that aggregator apps had permitted booking of bike taxis on their apps.

This came after the court grilled the State over complete ban on the transport mode, instead of regulating it. "Today even e-bikes are not allowed. Now a complete legitimate trade is prohibited. So long as you are permitting a service, you can regulate it. The question is whether regulation would entail complete prohibition?” the judges orally had observed during the hearing.

The Court was considering appeals filed by bike taxi aggregators Ola, Uber and Rapido against a single judge's order halting their operations in the State.

The judges pointed out that every trade is permissible unless regulated. "This (bike taxi) is not res-extra commercium (outside commerce),” they said.

The Court had asked the State if it can examine the issue on a policy level. "We will defer it by a month. We don't have to be satisfied with the policy, we only have to find out whether the policy is arbitrary, malafide etc, we will not interfere in policy that's the scope," it said.

The AG agreed, stating that they will take a "conscious decision" on the issue. However, he clarified that State is not as of now considering to frame guidelines for bike taxis but will only take a decision whether or not it should make a policy and if yes, then what policy.

The Court then recorded that “at the level of the government serious thought will be given to the issues raised in the present matter."

Before concluding the counsels for the appellants had pressed for passing an interim order permitting them to ply the vehicles. To which the court had said “We are not passing any interim order but at least communicate to some persons don't take any coercive action.”

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