The Karnataka High Court on Thursday upheld rules framed by the state government to regulate fares by taxi aggregators such as Ola and Uber, which includes a ban on surge pricing by these platforms.
Dismissing Uber India’s challenge to constitutionality of the rules governing its operation, the high court declared the Karnataka On-demand Transportation Technology Aggregators Rules, 2016, as constitutionally valid, though it struck down some of its provisions as unconstitutional.
The Aggregators Rules were promulgated by the government in order to ensure the compliance of the law, and the safety of the passengers, in order to ensure greater integrity of process and operation of on-demand transportation technology aggregator platforms like Ola and Uber.
The provisions that required the following were upheld by the court and the challenge against them was dismissed:
Justice Raghvendra S. Chauhan struck down the following provisions:
Rule 11 (1) (e) of the aggregator rules, which permits the licensing authority to suspend or cancel the aggregator's licence if "any criminal complaint is filed against the driver, or the aggregator, or its employee", suffers from vagueness.
Read the Judgment here.
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