Telangana High Court Seeks State's Stand On Plea To Regulate Taxi Fares

The Telangana High Court has sought the State government's stand on a plea by Telangana Gig and Platform Workers Union (TGPWU), questioning the State's inaction in regulating taxi fares thereby permitting aggregators to charge 'as per their whims and fancies'.

The plea claims that the State's inaction to ensure regulation of fare violates provisions of the Motor Vehicles Act. It claims that non-implementation of a 2022 GO issued by Transport, Roads and Buildings department thereby allowing aggregators to charge an amount as per their wishes is illegal, arbitrary and violates Article 14, 19, 21 of the Constitution of India and Competition Act. 

Justice K. Sarath in his order issued "notice before admission" and posted the matter after 4 weeks.

The plea contends that Section 74 of MV Act on grant of a contract carriage permit to a motor cab is subject to conditions as the Regional Transport Authority may deem fit to impose, including the requirement to carry a taximeter and to charge fares as per the rates fixed by the Government.

Meanwhile Section 96 empowers the State Government to make rules regulating the conditions of permits, including the installation and maintenance of taximeters in motor cabs.

"Despite these statutory provisions, the Respondent Nos. 1 & 2 have failed to enforce uniform fare structures or insist upon the mandatory use of meters, thereby permitting arbitrary and exploitative fare collection by taxi operators and aggregators. The said inaction is resulting in charging of excess fares by the aggregators who are fleecing the public in the name of 'surge fees' 'peak hour charges' 'congestion charges' etc," the plea claims. 

The plea also states that 2022 GO revised the fares of prepaid motor cabs/taxis operating at Rajiv Gandhi International Airport, Shamshabad.

The plea claims that the State Transport Authority, Hyderabad was specifically directed to take necessary steps for implementation and enforcement of the said fare structure. However, the plea claims, that the GO has not been effectively implemented.

It claims that no meaningful action was taken by the State Transport Authority or other concerned authorities to operationalize or monitor compliance with the revised notification.

As a result, taxi operators and aggregators continue to charge arbitrary fares at the airport, defeating the very purpose of the Government Order and rendering the statutory directions nugatory, it adds. 

The matter is listed on October 16.

Case title: Telangana Gig and Platform Workers Union and Another vs. State of Telangana and Others

Case No: WP 27223 of 2025

Counsel for petitioner: Mohammed Absar Ahmed

Click Here To Read/Download Order