On November 25, 2022, the Karnataka transport department had capped service charges for app-based auto rickshaw bookings at 5% plus applicable GST on the base fare.
This move was challenged by Uber, Ola and Rapido before the High Court. They cited Motor Vehicle Aggregator Guidelines which permit them to charge a commission of 20% along with a surge price of up to double the base fare.
They also sought quashing of the notification which they said was illegal, arbitrary and irrational.
In January 2023, the Court had stayed the notification and allowed the aggregators to operate temporarily while charging a 10% convenience fee.
Justice CM Poonacha had observed that the State government, while issuing the notification, was required to take into consideration the Motor Vehicle Aggregator Guidelines, which deals with the entire gamut of the operations of transport aggregators and not the Motor Vehicles Act.
The Court eventually dismissed the petitions on Monday.
Source: Barandbench
