JOIN USOla, Uber autos can charge 10% + GST above mandated government fares: Karnataka HC
The High Court of Karnataka on Friday ordered auto-rickshaw aggregate services to follow the November 2021 state government-fixed fare with additional 10% and applicable GST until a new fare is evolved.
Justice M G S Kamal passed the order after Advocate General (AG) Prabhuling K Navadgi submitted that the state government is open and willing to fix the fare for aggregated/app-based auto-rickshaw services in 10 to 15 days after giving an opportunity to all the stakeholders, including the general public.
During the hearing, the AG submitted that though a meeting was convened on Thursday, no consensus was arrived at. He said the state was open to come out with a fare fixation as per Section 67 of the Motor Vehicles Act for aggregated auto-rickshaws within a fortnight and till such time, the petitioner aggregators will have to abide by the fare already notified on November 6, 2021.
On the other hand, the petitioners submitted that the fare fixed as per the 2021 notification would cause huge cost on them as the services being provided are on various heads.
Considering the submissions, Justice Kamal posted the petitions filed by Ola, Uber and other aggregators to November 7.
The court also said that the authorities shall not take any coercive action or measures against the aggregators till the state government comes up with the fare fixation.
Meanwhile, liberty has also been reserved for the aggregators to seek issuance/renewal of the licence in accordance with the law.
Guidelines
The court noted that Section 93 of the Motor Vehicles Act has been amended with insertion of providing licence to aggregators.
As per the proviso, the state government may follow such guidelines as issued by the central government.
The court observed that while the Centre has already issued guidelines called the Motor Vehicle Aggregator Guidelines-2020, the state government is yet to formulate these guidelines.
“However, in view of the submission made by the Advocate General (AG) that the state government is open and willing to formulate the fare fixation, this court is of the view and opinion that the guidelines will also have to be adhered to,” the court said.