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Karnataka HC Stays 5 Percent Cap on Service Fee for Online Autorickshaw-hailing, Big Relief for Ola and Uber

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Last Updated: January 05, 2023, 19:00 IST

Image used for Representation. (Photo: IANS)

The new notification came up after the intervention of the High Court, directing all stakeholders’ views should be considered

The High Court of Karnataka on Wednesday stayed the Transport Department notification, fixing a cap of 5 percent on service charges collected by online aggregators for autorickshaw-hailing.

The notification issued on November 25, 2022, was challenged by the aggregator’s Ola and Uber. The earlier notification derecognising such service was challenged too.

Also Read: Promote E-Mobility by Extending Subsidy for EVs Under FAME-II Scheme: SMEV

The new notification came up after the intervention of the High Court, directing all stakeholders’ views should be considered. Till then, the court allowed the aggregators to collect 10 percent as a service fee.

The aggregators said they were incurring losses even if they collect 10 percent and cited the Central government that approved a service fee of 20 percent.

After issuing the stay today, Justice CM Poonacha said the court would hear out the petition along with the main petition regarding the aggregator license for such autorickshaw-hailing.

Read all the Latest Auto News here

(This story has not been edited by News18 staff and is published from a syndicated news agency feed)


Last Updated: January 05, 2023, 19:00 IST

Image used for Representation. (Photo: IANS)

Image used for Representation. (Photo: IANS)

The new notification came up after the intervention of the High Court, directing all stakeholders’ views should be considered

The High Court of Karnataka on Wednesday stayed the Transport Department notification, fixing a cap of 5 percent on service charges collected by online aggregators for autorickshaw-hailing.

The notification issued on November 25, 2022, was challenged by the aggregator’s Ola and Uber. The earlier notification derecognising such service was challenged too.

Also Read: Promote E-Mobility by Extending Subsidy for EVs Under FAME-II Scheme: SMEV

The new notification came up after the intervention of the High Court, directing all stakeholders’ views should be considered. Till then, the court allowed the aggregators to collect 10 percent as a service fee.

The aggregators said they were incurring losses even if they collect 10 percent and cited the Central government that approved a service fee of 20 percent.

After issuing the stay today, Justice CM Poonacha said the court would hear out the petition along with the main petition regarding the aggregator license for such autorickshaw-hailing.

Read all the Latest Auto News here

(This story has not been edited by News18 staff and is published from a syndicated news agency feed)

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