New Delhi: The Karnataka High Court on Friday ruled that motorcycles used for bike taxi services fall in the transport vehicles segment under the Motor Vehicles (MV) Act, 1988, therefore, the state government cannot deny such vehicles permits on the ground that motorcycles are not transport vehicles.
In allowing a batch of petitions filed by aggregator platforms, the bike taxi association and by individual bike taxi drivers, a bench of Chief Justice Vibhu Bakhru and Justice C. M. Joshi also set aside the earlier single judge’s order, which had led to protests in Karnataka.
The protests had come in the aftermath of the state government’s “inaction” in formulating a proper policy or framework after the Karnataka High Court passed an order on 2 April 2025, directing bike taxi aggregators like Uber and Rapido to cease operations from 16 June, until a proper framework was in place.
Making it clear that the state needed to grant contract carriage permits to eligible motorcycles, the court said in its 111-page order: “We direct the state government to consider such applications for the registration of motorcycles as transport vehicles and for the grant of permits to operate them as contract carriages.”
Although the authorities are not barred from examining relevant aspects for vehicle registration and issuance of permits, these applications will not be denied on the ground that motorcycles cannot be operated as transport vehicles or contract carriages, the court said.
The order, made public Saturday, pointed out that even the Karnataka government had recognised this under Sections 73 and 74 of the MV Act, which essentially relate to applications for the grant of contract carriage permits, which allows vehicles like taxis to carry passengers for a fee.
The present case related to the concerns about the rights of motorcycle owners to register their vehicles as transport vehicles, carrying a yellow number plate, including the right to use them as a contract carriage.
The court also recalled the Supreme Court’s view that states have the legislative competence to prescribe conditions for an aggregator’s licence under Section 93 of the MV Act, which grants them full authority to issue permits.
The court also noted that the existing regulatory framework applicable to taxis requires reconsideration and suitable amendment, keeping in mind the inclusion of bike taxi services.
Upholding the right to ply bike taxi services in the state of Karnataka, the court noted that even the Centre had framed guidelines, last year, for the grant of licences to aggregators.
Pointing to the definition of taxis under the Karnataka On-Demand Transportation Technology Aggregators (KODTTA) rules, 2016, which were introduced to regulate app-based ride-hailing services like Ola and Uber in the state, the court said the definition also included motor cabs and the court was “unable to accept that the KODTTA rules exclude the grant of a licence for aggregating bike taxi services”.
“However, in the present case, the state government has framed the KODTTA rules, which provide for the grant of a licence to an aggregator for aggregating taxis. Since taxis include motorcycles, an aggregator is also entitled to operate as an aggregator for bike taxi services,” the court ruled while adding that taxi aggregators would need to furnish details of the vehicles for incorporation in their licence under the KODTTA rules.
Bike taxis plying in the state shall display the vehicle permit, as well as the driver’s details, including his photograph, name, driving licence, badge particulars, and ID card issued by police authorities, which are accessible to the passenger, the court also said.
Origin of the ban
In its April order, the high court had noted that the transport department cannot be compelled to register motorcycles as transport vehicles or issue a contract carriage permit for bike taxis without a proper regulatory framework in place.
In doing so, it referenced a 2019 report of an expert panel, which assessed the impact of bike taxis on traffic and safety, suggesting that such vehicles shouldn’t be allowed in Bengaluru.
Elaborating this report, Nirupan Gowda, an advocate at the Karnataka HC, told ThePrint, “In 2018, an expert committee was constituted by the government, which came out with a report in 2019, that spoke of pollution emanating from bike taxis, and pointed to the abundance of alternative transport options. Despite this, however, the state government came out with its Electric Bike Taxi Scheme in 2021.”
Three years later, the scheme was withdrawn owing to multiple violations, confrontations between auto drivers and bike taxi riders, and women’s safety concerns, Gowda said. “The learned single-judge has rightly pointed out that it is under the Karnataka government’s ambit to come out with such a framework, given that it’s a policy decision.”
The situation elsewhere & SC’s stance
In February 2023, the Delhi transport department issued a public notice banning the use of two-wheelers for carrying passengers on hire but this was challenged by the bike taxi aggregators, among others, before the Delhi High Court, which in turn stayed the operation of the ban in May.
The Delhi government told the HC that two-wheelers were being provided by aggregators, without proper licence or permit, and that plying of such non-transport vehicles for hire or reward violated their registration conditions.
Significantly, the government had expressed its intention to consider a policy for giving licences to two-wheelers and four-wheelers.
In July 2023, the Supreme Court hit pause on the HC order, which effectively permitted these bike taxis from operating in Delhi. “We accordingly direct permanent stay on operation of the impugned orders, which were interim in nature,” the SC ruled, adding that after the formulation of a policy, each application for licence in respect of such two-wheelers would be dealt with in a time-bound manner.
Three months on, the Delhi government approved a scheme for bike taxis, but with a catch—that only electric bike taxis could operate, under conditions such as compulsory training of drivers whose monthly ratings averaged below three.
Similarly, Maharashtra came up with e-bike taxi rules in May, specifying that these taxis must operate below the speed of 60 km per hour, and cannot operate during heavy rain or storm conditions.
(Edited by Viny Mishra)
Also read: At the centre of a plea against bike-taxi app Rapido, the fight for equal access to digital services