Karnataka High Court Declines Stay On Single Judge Order Which Held Bike Taxis Cannot Operate In State Unless Relevant Rules Are Framed

The Karnataka High Court on Friday issued notice to the State government and others on appeals filed by ANI Technologies which operates OLA and Uber India Systems Private Limited, challening a single judge order which held that bike taxi aggregators like Rapido, Uber and others cannot operate in the state unless the State government issues relevant guidelines and rules under the Motor Vehicles Act.

A division bench of Acting Chief Justice V Kameshwar Rao and Justice Sreenivas Harish Kumar said, “Issue notice to respondents returnable on June 24. It is made clear that appeal will be heard on the next date and no adjournments will not be sought.”

Further, the court refused the prayer made by the appellants to continue interim relief and direct the respondents not to take any precipitative action till the hearing of the appeals. It said, “If they were framing rules we could have permitted it but they are not.”

“If their stand was that we are taking time to frame rules we will come with the rules, they say as a policy decision we have decided not to frame rules, if first one was possible, we could have said that you are framing rules, the delay is attributable to you and they should not suffer, we could have possibly injuncted them. But not in this scenario where they say we have taken a policy decision not to frame rules.” it said.

The single judge has in his order directed that the State government has to in six weeks ensure that all bike taxi operations cease to operate. It was extended till June 15. Thereby, Bike Taxis are likely to cease operations from June 16 in the State.

Senior Advocate Dhyan Chinnappa argued that the single judge has recognised that two-wheelers can be used as a transport vehicle. Advocate General Shashi Kiran Shetty countered this by saying, “No doubt about that but it has to be under a policy.”

Counsel for Uber referred to the Central Government rules and submitted that the State of Karnataka has not framed any rules, and thus, bike taxis can operate.

To a query made by the court on whether pending framing of rules, the bike taxis can operate, AG Shetty said that they cannot run. 

The petitioners Uber India Systems Private Limited, ANI Technologies Private Limited, Roppen Transportation Services Pvt Ltd, and another had in 2022 approached the court seeking a direction to the state government to permit the registration of motorcycles as transport vehicles and permit aggregation of motorcycles. By way of an interim order passed in 2022, the court had restrained the respondent authorities from taking any coercive action against the petitioners.

The court on April 2, dismissed the petitions referring to an expert committee report of 2019, which had considered the impact of bike taxis on traffic and safety. It had also asked the state government in three months to frame the necessary rules and guidelines.

Case Title: ANI Technologies Private Limited AND State of Karnataka & Others

Case No: WA 906/2025 c/w WA 848/2025.