Karnataka HC allows autorickshaw aggregators to charge 10% surcharge

Earlier, the High Court had directed the state government to fix the fare of app-based autorickshaw aggregators within 15 days.

The state government led by CM Bommai last fixed the autorickshaw fare on June 11, 2021. The state government had banned the app-based autorickshaw-service, as they were charging a surcharge over and above the fare fixed by the government.

Read also: Ola, Uber, Rapido’s ‘illegal’ auto-rickshaw services ply in Karnataka despite ban

In his order, Justice MGS Kamal allowed 10 per cent surcharge along with applicable GST and said this would be the only temporary measure till the new fares are fixed.

Private aggregators had demanded at least 20 per cent surcharge, however, the state transport department was unwilling to allow more than 10 per cent.

Last week, the government banned app-based autorickshaw-hailing services on the grounds that the license issued under the Karnataka On-Demand Transportation Technology Aggregator rules was only for cabs and not for autorickshaws.

All the three private aggregators – ANI Technologies Pvt Ltd which operates Ola, Reopen Transportation Services Pvt Ltd and Uber India Systems Pvt Ltd – challenged the ban before the court.

Justice MGS Kamal heard the petitions on Thursday and suggested that the officers and companies come to an agreement and make a common submission.

After this the state government agreed to talk to the aggregators.

Though the state government argued that autorickshaws were not covered under its rules, the court said that the Motor Vehicle Aggregator Guidelines 2020 (MVAG) issued by the central government also covers autorickshaws, e-rickshaws, motorcycles and buses. The court said all these vehicles can be used for providing aggregator service.

With PTI input.