State didn't produce any statement embodying its policy on bike taxis: Karnataka High Court

Bengaluru: The Karnataka High Court has said that the state government had not produced any statement embodying its policy on bike taxis.

A division bench comprising Chief Justice Vibhu Bakhru and Justice CM Joshi noted that, on the contrary, in 'Karnataka Electric Bike Taxi Scheme, 2021', which was subsequently withdrawn, the state had recognised the urgent need to put in place a system that would provide affordable first-and last-mile connectivity.

The state government had contended that the decision to refuse registration of motorcycles and bike taxis is a policy decision. On the other hand, the aggregators and other appellants had argued that failure to frame a policy or a subordinate legislation cannot operate as a prohibition.

The bench referred to the April 2019 expert committee report which on one hand suggested continuing the bike rental mode, however concluded recommending development of infrastructure for connectivity rather than permitting bike-taxis. The bench said the July 2021 notification on 'Karnataka Electric Bike Taxi Scheme, highlighted that there was a gap for the first mile and the last mile connectivity, which was a bottleneck to further use of public transport.

“The government had recognized the urgent need to put in place a system that would provide affordable first- and last-mile connectivity. It noted that bike taxis would promote urban mobility and would act as a first and last mile connectivity solution for the citizens,” the bench said referring to the 2021 notification.

The bench further said, “More importantly, it would not be open to the Government of Karnataka to refer to the expert committee's report, issued in April 2019, as constituting the State Government's policy.

The policy of the State Government was quite to the contrary, as it had proceeded to frame a scheme for bike taxis, albeit confining it to electric bikes and electric motorcycles for use as transport vehicles (Taxis).”

The bench said that proscribing the service in the interest of the public requires substantiation by credible material. The question is not whether bike taxis should be permitted; the question is whether they should be prohibited in the public interest. Several other States have issued permits for bike taxis, the bench said.

“The states of Haryana, Punjab, Rajasthan, Uttar Pradesh, West Bengal, and Mizoram have issued notifications permitting bike taxi services by requiring applicants to obtain contract carriage permits from State and Regional Transport Authorities upon receipt of an application and payment of the defined fees. Additionally, State Governments such as Bihar, Jharkhand, Gujarat, and Telangana have also provided for the grant of commercial registration and permits for motorcycles.”

Aggregators' right to aggregate bike taxi services.

The court said that in terms of the union government guidelines, MVAG 2025, the state has framed Karnataka On-Demand Transport Technology Aggregator (KODTTA) Rules in exercise of powers under Section 96 of the MV Act.

“Since a motorcycle would fall within the definition of a motor cab under Section 2(25) and consequently within the definition of a 'taxi' under Section 2(7) of the KODTTA Rules, a licence issued under the said Rules would also cover a bike taxi. unless specified otherwise,” the bench said.