In a landmark judgment that will reshape urban mobility in Bengaluru and beyond, the Karnataka High Court on Friday lifted the long-standing ban on bike taxi services across the state. The decision comes as a massive victory for cab aggregators like Ola, Uber, and Rapido, as well as thousands of individual bike riders who rely on these platforms for their livelihood.

A Division Bench comprising Chief Justice Vibhu Bakhru and Justice CM Joshi set aside a previous single-judge order from April 2025 that had halted all bike taxi operations. The Court held that the government cannot discriminate against motorcycles when it comes to granting transport permits, provided they meet the safety and regulatory standards.

The core of the legal battle rested on a simple question: Can a motorcycle be legally considered a "taxi"?

Earlier, the State Government and a single-judge bench had taken the view that motorcycles were meant for personal use and did not fit the definition of "transport vehicles" under the Motor Vehicles Act, 1988. This led to a blanket ban, as the state argued it lacked a specific policy to regulate two-wheelers used for hire.

However, the Division Bench disagreed. The Court clarified that under the Motor Vehicles Act, 1988, motorcycles do indeed fall within the definition of "transport vehicles." Because of this, the State Government cannot refuse to accept or process permit applications simply because the vehicle in question has two wheels instead of four.

"Taxi owners are at liberty to file applications for registration of the vehicle as a transport vehicle," the Court observed. "The State government must consider such applications for registration and grant permission to operate as contract carriages."

For over a year, bike taxi operators in Karnataka lived in a state of legal uncertainty. Many riders faced heavy fines and vehicle seizures as authorities cracked down on what they deemed "illegal" operations.

Today’s verdict changes the landscape in three major ways:

Right to Apply for Permits: Individual bike owners can now apply for "Contract Carriage Permits." This is the same type of permit used by auto-rickshaws and taxis to ferry passengers from one point to another.
No More "No Policy" Excuse: The Court ruled that while the State is free to impose safety conditions, it cannot use the "lack of a policy" as a reason to ban a legitimate trade.
Aggregator Licenses: Companies like Ola, Uber, and Rapido are now at liberty to file fresh applications for aggregator licenses. The Court directed the state to consider these applications in light of the new observations.

To make the ruling easy to understand for the general public, the Court focused on Section 74(2) of the Motor Vehicles Act.

In simple legal terms, a "Contract Carriage" is a vehicle that carries a passenger under a specific contract (like a booking on an app) for a fixed rate. The Court noted that the Regional Transport Authority (RTA) has the power to fix conditions for these permits—such as safety gear for passengers, speed limits, or GPS tracking—but they cannot say "no" just because the vehicle is a motorcycle.

This case reached the Division Bench after several appeals were filed against an order passed by Justice B Shyam Prasad on April 2, 2025. In that earlier ruling, the single judge had ordered all bike taxi services to stop within six weeks, reasoning that the state needed to frame specific rules first.

During the recent hearings, the Division Bench grew increasingly impatient with the State’s delay. The judges repeatedly asked why the government hadn't implemented rules despite several years of the industry's existence. The Court noted that "lives are at stake," referring to the livelihoods of thousands of gig workers who had been pushed into financial distress by the ban.

While the ban has been lifted, it is not a "free-for-all." The Court was careful to state that the Karnataka government still holds the power to regulate.

The State can (and likely will) impose conditions to ensure:

Passenger Safety: Requirements for helmets for both the rider and passenger.
Vehicle Maintenance: Regular checks to ensure the motorcycles are road-worthy.
Background Checks: Ensuring that riders on aggregator platforms have clean records.
Traffic Management: Deciding if certain areas should be restricted to prevent congestion.

The Court also suggested that the existing rules for taxis in Karnataka need a "reconsideration and suitable amendment" to properly factor in the unique nature of two-wheeler services.

The lifting of the ban is expected to significantly ease Bengaluru’s notorious traffic woes by providing a faster, cheaper alternative for "last-mile connectivity"—the short distance between a commuter's home and a metro station or bus stop.

Advocates representing the aggregators and the Bike Taxi Welfare Association hailed the decision as a victory for the "Right to Profession" guaranteed under the Indian Constitution. They argued that in a digital age, preventing someone from using their motorcycle to earn a living through a mobile app was an outdated restriction.

As of today, the ball is back in the State Government’s court. They must now begin processing thousands of pending permit applications and create a fair regulatory framework that balances the interests of bike taxis, traditional auto-rickshaw drivers, and public safety.

Case Title: ANI Technologies Pvt Ltd & Others v. State of Karnataka
Bench: Chief Justice Vibhu Bakhru and Justice CM Joshi
Appearing for Rapido: Senior Advocate Uday Holla
Appearing for Uber: Senior Advocate Sreenivasa Raghavan
Appearing for Ola: Senior Advocate Arun Kumar
Appearing for State: Advocate General Shashi Kiran Shetty