Uber appeals against Karnataka High Court's decision on auto fare circular

Bengaluru: Transport aggregator Uber India Systems Pvt Ltd has appealed to the division bench of the Karnataka High Court, challenging the single bench order regarding the fare notification issued by the Transport Department.

A division bench comprising Chief Justice NV Anjaria and Justice KV Aravind has scheduled the hearing for July 26. This decision followed the Advocate General's submission that the state government also plans to file a writ appeal against the single bench order.

On May 27, 2024, the single bench dismissed petitions filed by Ola and Uber challenging the notification issued on November 25, 2022, which fixed the service charge for app-based auto-rickshaw cab services. The court ruled that the aggregators would be entitled to collect a 5 per cent service charge as per the notification.

Senior advocate Sajan Poovayya, representing Uber, argued that the Transport Department lacks jurisdiction to regulate the contract between auto drivers and aggregators. He said that despite the single bench acknowledging Uber as an aggregator, it concluded that the company is engaged in providing transport services. This, Poovayya contended, exposes Uber to potential prosecution under the Motor Vehicles Act due to the absence of a permit for transport services.

Meanwhile, Advocate General K Shashikiran Shetty stated that the state government's position is that aggregators must obtain separate licences for cars, auto-rickshaws and two-wheelers. He also clarified that currently, there is no immediate concern regarding prosecution.

The state government had permitted a 5 per cent increase over the base fare established in November 2021.

In their petitions before the single bench, the petitioners argued that the guidelines issued by the central government stipulate a service fee of 20 per cent of the amount collected from the rider.

They further asserted that as aggregators, they are neither permit holders nor owners, but merely intermediaries, not engaged in providing transportation services.