Uber, Ola Cabs Impounded as Karnataka's Crackdown on Ride-Sharing Continues

In a crackdown, the Karnataka Transport Department on Friday impounded 30 cabs for offering share-services banned by it but gave 15 days more to cab aggregators to sort out the ride-sharing issue.

Uber, Ola Cabs Impounded as Karnataka's Crackdown on Ride-Sharing Continues

The action came as the ban on ride-sharing service was put into effect with the state government terming it illegal invoking provisions of the Central Motor Vehicle Act and Karnataka On-demand Transportation Technology Aggregators Rules, 2016.

“There was a meeting today and the government has decided to give them (cab aggregators) 15 days time, and hence there will be no action against them to offer share-services,”

Karnataka Transport Commissioner M K Aiyappa told PTI in Bengaluru. Earlier, on January 30, the transport department had given three days time for the cab aggregators to come out with suggestions to sort out the sharing services and other issues relating to drivers.

Since the deadline ended on Friday, the department initiated the action and impounded 30 cabs for offering share-services, Aiyappa said. However, the cabs will be released after the payment of penalty of Rs. 1,000 per cab, he said.

Since the government has given another 15 days time, the department has stopped impounding vehicles, Aiyappa said.

The cab aggregators had introduced share services – Uber Pool and Ola Share – to reduce traffic congestion and take the ride at lower cost.

Earlier, the Transport Department had banned bike taxis, which were introduced for a brief period by Ola and Uber.

The meeting was held to sort out the sharing services and other issues relating to drivers, the Commissioner said.

Aiyappa said government would implement their suggestions to amend some provisions under the state rules, if they are in public interest.

“The cab aggregators have been asked to make their submissions. If the amendment which they are seeking is in the interest of the public, then the government is willing to do it,” he said.

Replying to a query, Aiyappa said the government would seek legal opinion on their recommendations before making any amendment to the state rules.

The cab aggregators, on January 30, had agreed to make certain changes in their programme and pitched for submitting certain recommendations to solve various problems, he said.

Asked what punitive measures the department would take against violators after 15 days, Aiyappa said, “We will file a chargesheet before the court against the violators.”

“For the first offence it is Rs. 2,000, second and subsequent offence is Rs. 5,000 to Rs. 10,000. The court will levy the penalty. Second and subsequent offence we will take up the issue for cancellation of the permit,” he added.

Aiyappa said as the per the rules, the cabs are permitted only to pick and drop passengers to a particular point.