The Karnataka High Court on Friday restored the legality of bike taxi operations in the state, observing that motorcycles deployed for bike taxi services squarely fell within the definition of ‘transport vehicle’ under Section 2(47) of the Motor Vehicles Act, 1988, when used for carriage of passengers for hire or reward.
The Division Bench of Chief Justice Vibhu Bakhru and Justice CM Joshi held that the state could not deny registration or permits to such vehicles solely on the premise that motorcycles were excluded from the category of transport vehicles.
The order was passed on a batch of intra-court appeals filed by leading mobility aggregators, including ANI Technologies Private Limited (Ola), Uber India Systems Private Limited and Rapido, as well as individual riders and the Bike Taxi Welfare Association. The petitioners challenged the single-judge verdict of April 2, 2025, which suspended bike taxi services until the state government framed a specific regulatory framework.
The Division Bench quashed the single-judge Bench judgment on the grounds that motorcycles deployed for bike taxi services squarely fell within the definition of ‘transport vehicle’ under Section 2(47) of the Motor Vehicles Act, 1988, when used for carriage of passengers for hire or reward. Consequently, the state could not deny registration or permits to such vehicles solely on the premise that motorcycles were excluded from the category of transport vehicles.
The High Court further clarified that bike taxi operators were entitled to apply for contract carriage permits under Chapter V of the Act. While the competent transport authorities retain the discretion to scrutinise such applications and impose conditions permissible in law, particularly under Section 74(2) of the Act, permits could not be rejected merely because the vehicle in question was a two-wheeler.
Aggregator platforms were also granted liberty to submit fresh applications, which were required to be considered in accordance with statutory provisions and the observations made by the Court.
The Bench implicitly disapproved of the reasoning adopted by the single-judge Bench, which held that in the absence of explicit state rules or a notified policy permitting bike taxis, such services could not be lawfully operated. The earlier order had mandated cessation of operations within six weeks, a deadline that was subsequently extended following representations by affected operators.
During the appellate proceedings, the Division Bench repeatedly expressed concern over the state government’s delay in evolving a coherent regulatory framework for bike taxi services, despite the rapid expansion of app-based mobility platforms and changing urban transport dynamics.
The Division Bench indicated that continued regulatory inertia could not be a ground to sustain a blanket prohibition on an otherwise statutorily permissible mode of transport.
It further observed that the existing regulatory architecture governing taxi and contract carriage services warranted reconsideration and appropriate amendment to expressly accommodate and regulate bike taxi operations, keeping in view public convenience, road safety, and technological developments in the transport sector.
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