Karnataka HC allows motorcycles to be used as bike taxis, directs state to issue permits

While pronouncing the order, the bench said, “Taxi owners are at liberty to file applications for registration of the vehicles as transport vehicles (yellow boards). We direct the State government to consider such applications as transport vehicles and to grant permits to them to operate as contract carriages.”

The bench made clear that applications filed cannot be rejected on the ground that motorcycles cannot be operated as transport vehicles. The bench also directed the Regional Transport Authorities to consider imposing conditions as may be necessary under Section 74 (2) of the Motor Vehicles Act.

Under Section 2(7) of the Motor Vehicles Act, 1988 “contract carriage” means a motor vehicle which carries a passenger or passengers for hire or reward and is engaged under a contract, whether expressed or implied, for the use of such vehicle as a whole for the carriage of passengers mentioned therein and entered into by a person with a holder of a permit in relation to such vehicle or any person authorised.

Some of the conditions mentioned in Section 74 (2) of the Motor Vehicles Act include that the vehicles shall be used only in a specified area or on a specified route or routes. The maximum number of passengers and the maximum weight of luggage that may be carried on the vehicle, either generally or on specified occasions or at specified times and seasons.

The bench also permitted bike-taxi aggregators to file fresh applications for grant of license under the Aggregator rules. Aggregators have been told that the details of the vehicle owners onboarded to their platforms must be displayed so they are accessible to riders.

The aggregators claimed in court that by imposing the ban, the livelihoods of around 6 lakh bike taxi owners were affected, and it was violative of Article 19 (1)(g) of the Constitution of India (Right to practise any profession, or to carry on any occupation, trade or business).

After the Karnataka High Court’s bike taxi judgement, Uber said it welcomes the decision to “recognise bike taxis as a legal mode of passenger transport” in the state.

“Bike taxis serve as a vital mobility lifeline for Indian cities, offering people an affordable and convenient way to navigate traffic. The decision will also bring relief to lakhs of drivers who depend on it for their livelihood. We look forward to engaging with the State Government on operationalising this mobility ecosystem and serving the mobility needs of our cities across the spectrum,” a Uber spokesperson said in a statement.

Bike taxis operate in 18 states across the country. In 2021, the Karnataka Government introduced an Electric Vehicle (EV) policy that allowed bike taxis, but later recalled it.