Bengaluru: The Karnataka government’s transport department has suspended the license of Ola Cabs in the state for a period of six months. The ban was imposed after the cab aggregator allegedly violated the government rules by running bike taxis.
According to the Karnataka government’s Transport Department, “Aggregator means a person who is an aggregator or operator or an intermediary/market place who canvasses or solicits or facilitates passengers for travel by taxi and who connects the passenger/intending passenger to a driver of a taxi through phone calls, internet, web-based services or GPS/GPRS based services whether or not any fare, fee, commission, brokerage or other charges are collected for providing such services.”
Earlier in the year, the Transport Department officials of the state had seized several bikes which were operating as bike taxis for Ola without prior permission. The case was investigated and officials submitted a report to the Transport Commissioner based on it.
“According to Section 11 (1) the Karnataka On Demand Transportation Technology Aggregators Rules 2016, the Transport Department can decide to cancel the license of the cab aggregator as there is a violation of rules,” stated an official Karnataka government notice.
The notice added, “Prior to this, a notice must be sent to the company in question. Hence. on February 15, 2019, the Transport Department had sent Ola a notice, asking the company to respond to the findings of the probe. Ola sent its reply on March 3, 2019. As the company’s reply was not satisfactory and did not provide any evidence which proved it did not violate norms, the Transport Department, as on March 18, 2019, has decided to suspend the license of Ola for a period of six months.”
Ola is under the obligation to submit the original copy of the license in a matter of three days from the date of receiving a copy of the order.