Ola seeks 20 more days to reply to notice over surge pricing

Facing flak for introducing surge pricing, cab aggregator Ola is now bargaining for more time from the Transport department to respond to a show-cause notice. This is the second time the firm has sought extra time to reply to the notice served on July 11.

In the notice, the Transport department had asked why its (Ola) licence should not be cancelled for violation of rules for surge pricing and for introducing shuttle services. It says it is a violation of the Karnataka On-demand Transportation Technology Aggregators Rules, 2016. On Friday, the cab operator sought an additional 20 days’ time citing that the surcharge matter was before the High Court. The department had already given it 10 days’ time to respond when it had appealed before the department for the first time on July 18.

Transport department officials say that the company was dodging the issue fearing a legal setback. Another car aggregator Uber has challenged the new rules. The matter is still being heard in the High Court. Ola is also made a party in the case. An official said, “Not to reply to a notice is a ploy by the company to avoid contradiction of its own petition filed before the court.’’

In a written appeal, Ola claimed that it has stopped imposing surcharge on its customers ever since the matter reached the court. Further, it saidit will examine the technical issues which were raised by the department in the notice.

In-charge Transport Commissioner H G Kumar told DH on Monday the department is still scrutinising Ola's application. “We will decide after completing the scrutiny,’’ he said.

Ola has also violated nationalisation of areas scheme notification of the BMTC. According to this rule, no private operators, including cab aggregators, are allowed to introduce shuttle services in a 50-km radius in the city because BMTC has exclusive rights to ply its buses.