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Karnataka HC bans surge pricing, uphold rules to regulate Ola, Uber

Maharashtra, Delhi, West Bengal have framed similar rules to regulate these aggregators

Alnoor Peermohamed  |  Bengaluru 

 Photo: Shutterstock
Photo: Shutterstock

The on Thursday upheld rules framed by the state government to regulate fares by taxi aggregators such as and Uber, which includes a ban on by these platforms.

The ruling is a setback to both and as several states, including Maharashtra, Delhi and West Bengal have framed similar rules to regulate these aggregators.

In June, had filed a petition seeking quashing of new rules by the state government that mandate licenses and ban had questioned the legality of Karnataka to frame the rules calling it "anti-constitutional". had secured a license.

Karnataka HC bans surge pricing, uphold rules to regulate Ola, Uber

and the Radio Taxi Operators Association with members such as have supported the government rules, while Uber, which opposes the new rules has called it anti-constitutional.

in its submission to the court said that Uber's petition is motivated in an "attempt to bypass the laws of the land by foreign companies who run their operations in this country for profit without due regard for the applicable laws".

Karnataka, whose capital Bengaluru is one of the largest markets for both and Ola, had brought out Karnataka On-Demand Transportation Technology Aggregators Rules, 2016, that mandated these aggregators to comply with physical meters, taxi boards, emergency buttons and GPS on 100 cabs.

First Published: Fri, November 11 2016. 01:03 IST
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