The High Court of Karnataka has told to the State government to fix the fare of app-based autorickshaw aggregators within 15 days. Till then the service providers can collect 10 percent additional charge above the fare. On June 11, 2021, the government last set the prices for autorickshaws.
The government’s decision to outlaw app-based autorickshaw services was prompted, in part, by the fact that these services were adding an extra to the fixed rate.
On Friday, Justice MGS Kamal issued an order allowing a 10% service fee in addition to the GST and stating that this was only a temporary measure until the new tariff was set.
The aggregators had demanded a minimum surcharge of 20 percent, but the transport department was unwilling to allow more than 10 percent.
Last week, the government banned app-based autorickshaw services because the license issued under the Karnataka On-Demand Transportation Technology Aggregators Rules was only for cabs, not for autorickshaws. ANI Technologies Pvt Ltd, Which operates Ola, Ropan Transportation services Pvt Ltd and Uber India Systems Pvt Ltd, Challenged the ban in court.
On Thursday, Justice MGS Kamal heard the petitions and suggested that the authorities and the companies come to a compromise and make a common submission. The government has agreed to communicate with aggregators.
While the state government argued that autorickshaws are not covered under these rules, the court said the Motor Vehicle Aggregator Guidelines 2020 (MVAG) issued by the central government also covers autorickshaws, e-rickshaws, motorcycles and buses. All these vehicles can be used to provide aggregator service, the court said.
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