The Karnataka High Court on Thursday upheld the rules framed by the state government to regulate taxi aggregation services, including Ola Cabs and Uber. The rules include a ban on surge pricing by these companies, which is applied during times of peak demands for taxis, Business Standard reported.
The court also upheld provisions of the Karnataka On-demand Transportation Technology Aggregators Rule, 2016, including one mandating that drivers be residents of the state for at least two years and that they can speak Kannada, Mint reported. The rules also called for all vehicles being fitted with panic buttons and ensuring that drivers did not work beyond eight hours a day. Vehicles with all-India tourist permits were also directed not to sign up with aggregation platforms, the court said.
The ruling came after a petition had been filed by Uber, questioning the legality of the Karnataka government’s regulatory framework. The company had called the rules “anti-constitutional”. However, Ola and the Radio Taxi Operators Association supported the Karnataka rules. Ola said that Uber’s petition was an “attempt to bypass the laws of the land”.
Other states including Delhi, Maharashtra and West Bengal have framed similar directives to regulate taxi aggregation services.
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