The Karnataka High Court on Friday ruled against granting interim relief to app-based bike taxi aggregators, paving the way for a state-wide halt in their operations from June 16.
A division bench comprising Acting Chief Justice V. Kameshwar Rao and Justice Sreenivas Harish Kumar was hearing appeals filed by Uber India Systems Pvt. Ltd., ANI Technologies Pvt. Ltd., and Roppen Transportation Services Pvt. Ltd. The companies had challenged an earlier decision by a single bench that directed bike taxis to cease services within six weeks, a deadline extended until June 15, 2025.
The single bench had previously stated that, in the absence of proper notification under Section 93 of the Motor Vehicles Act and relevant rules, bike taxis could not be permitted to operate in the state. The bench added, “Measures are always open to the state government to frame such guidelines.”
Despite the companies’ pleas for an interim stay or extension of the previous order, or at least a direction against punitive action until their appeals are resolved, the court declined to interfere. The aggregators had argued that the Karnataka Aggregator Rules already encompass bike taxis and highlighted that several other states permit such services.
However, Advocate General Shashikiran Shetty opposed any interim intervention, asserting that the companies were operating “without a licence, but solely on the strength of interim orders passed by the court.”
The division bench, while acknowledging the implications for livelihoods and public transport, noted that it could not grant even limited interim relief, especially when the state maintained that the matter involved a policy decision and it had opted not to formulate specific rules.
As per the court’s order, notices were issued to both the state and central governments, and they have been directed to submit their objections before the next hearing. The court also specified that “no requests for adjournment will be entertained.”
Separately, the companies had sought a directive from the single bench for the registration of motorcycles as commercial transport vehicles with yellow plates, in line with the Motor Vehicles Act. The state, however, maintained that such applications could not be considered, pointing out that the Karnataka On-Demand Transportation Aggregator Rules, 2016, did not provide for the issuance of licences to motorcycle taxi aggregators.
Meanwhile, in a parallel proceeding, Rapido—one of the major stakeholders in the bike taxi sector—had petitioned the court for interim relief against the state’s decision. But the court again refused to stay the ban, thereby reinforcing the government’s stance.
As reported by PTI, “Bike taxi services will no longer be allowed to operate in Karnataka starting June 16, following the Karnataka High Court’s refusal to stay a state government order banning them.”
The state’s Transport Department had earlier labeled bike taxi operations as unlawful under existing legislation, citing that only properly licensed and commercially registered vehicles could be used for passenger transport. This ruling is expected to significantly affect the operations of companies like Rapido and Uber Moto, which have gained traction in congested urban areas such as Bengaluru due to their affordability and convenience.
With this latest judgment, bike taxi operators in Karnataka must discontinue services beginning June 16 or risk facing legal consequences.
