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

Final Up to date: January 05, 2023, 19:00 IST

Picture used for Illustration. (Photograph: IANS)

The brand new notification got here up after the intervention of the Excessive Court docket, directing all stakeholders’ views ought to be thought-about

The Excessive Court docket of Karnataka on Wednesday stayed the Transport Division notification, fixing a cap of 5 % on service costs collected by on-line aggregators for autorickshaw-hailing.

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

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The brand new notification got here up after the intervention of the Excessive Court docket, directing all stakeholders’ views ought to be thought-about. Until then, the court docket allowed the aggregators to gather 10 % as a service payment.

The aggregators mentioned they have been incurring losses even when they gather 10 % and cited the Central authorities that permitted a service payment of 20 %.

After issuing the keep at present, Justice CM Poonacha mentioned the court docket would hear out the petition together with the primary petition concerning the aggregator license for such autorickshaw-hailing.

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(This story has not been edited by News18 employees and is revealed from a syndicated information company feed)

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