Karnataka HC refuses to stay halt on bike taxis; services to stop June 16

The Division bench of the High Court declined to stay its April order halting bike taxi operations, after the government said it had decided not to legalise the service under existing rules

The Karnataka High Court on Friday refused to stay an earlier order halting all bike taxi services in the state, after the government confirmed it had taken a policy decision not to permit such operations.

 

A Division Bench of Acting Chief Justice V Kameswar Rao and Justice Sreenivas Harish Kumar was hearing appeals filed by bike taxi aggregators, including ANI Technologies (which owns Ola) and Uber, against a single-judge order passed on 2 April, Bar and Bench reported.

 

The April order had directed all bike taxi operations in the state to cease within six weeks unless rules were framed to permit them. Following pleas from affected operators, the single judge extended the deadline to June 15.

   

On Friday, the court noted it might have considered staying the order if the government had shown it was working on new rules. However, it said, “Since the State said that it took a policy decision not to permit bike taxis,” there was no basis to issue a stay. The Bench acknowledged the issue involved both public interest and the livelihoods of drivers.

 

Legal arguments over Motor Vehicles Act 

Senior Advocate Dhyan Chinnappa, representing the appellants, contended that bike taxis could legally operate under the current Motor Vehicles Act, 1988, without the need for new rules.

 

“According to me, no new rules are required... The Central government has said that two-wheeler motor vehicles can be operated as transport vehicles. This has been recognised by the single judge... State rules are framed on the basis of which four-wheelers operate as taxis... On the face of it, this applies to two-wheelers also... The definition of ‘motor cab’ under the MV Act is anything that carries fewer than six passengers. A two-wheeler is also a motor cab,” he said.

 

Government opposes extension of interim relief 

Advocate General Shashi Kiran Shetty, appearing for the Karnataka government, opposed the plea for interim relief and said bike taxi operators had been functioning without permits under court protection.

 

“For five years, they have been operating without permits,” he submitted.

 

According to Bar and Bench, when Chinnappa requested a temporary stay until the next hearing, saying, “Till next date only (grant interim relief), we will make out a case; Court may independently examine it,” the Advocate General responded, “By virtue of court order, they can't run.”

 

The matter will be heard next on 24 June.

 

Transport department and unions oppose bike taxis 

The Karnataka Transport Department has consistently opposed bike taxi services, arguing that private two-wheelers with white number plates cannot be used for commercial purposes under the Karnataka Motor Vehicle Rules, 1989.

 

Auto-rickshaw and taxi unions have also frequently protested against bike taxis, saying they offer cheaper rides without regulatory parity.

 

Electric bike taxi scheme withdrawn in 2024 

In 2021, the state government introduced a scheme allowing electric bike taxis. However, it was withdrawn in 2024 due to safety concerns for women and violations of the Motor Vehicles Act.

 

Bike taxis had continued operating based on a 2022 High Court interim order, which restrained the state from taking action against operators until the legal questions were settled.

 

That changed with the April 2025 order, which upheld the government's right to bar such services.