Companies challenge new transport law in Karnataka HC

Bengaluru: The Karnataka High Court on Tuesday ordered issue of notice to state government following a petition filed by M/s Helion Technologies Pvt. Ltd, which provides a digital platform to connect existing taxi drivers holding permits with passengers.

The company the court challenging the new Karnataka on Demand Transportation Technology/Aggregators Rules 2016. Following directions from the Ministry of Road, Transport and Highways, the state introduced the new rules for ensuring the safety of passengers/customers who use taxi services through On-Demand Transport Technology platforms (ODTTP).

The petitioner stated that passengers/customers utilise its mobile application to check for available taxi services in their area, and thereafter, make a request for services with the company through its mobile application. Its ODTTP services have evolved into a vital part of the daily functioning of the society.

“By seeking to regulate such services, the Ministry  has issued guidelines which cohesively encapsulate the manner in in which these platforms work, the petition said, adding that in the preamble to the rules, the state has acknowledged that entities such as the petitioner company are IT based services. However, the state has erroneously implemented the rules under the Section 93 of the Motor Vehicles Act, it added.

The petition added that ODTTP service providers would rather fall within the purview of the IT Act. Taxi aggregrators had been opposing the decision to bring them under the section for quite some time citing that they were not the owners of the cabs and could not be held accountable for any incidents involving the vehicles.