Karnataka High Court stays service charge cap on auto service by app-based aggregators

Bengaluru: The Karnataka High Court on Wednesday placed an interim stay on the state government order, capping service charge at 5 per cent for app-based aggregators offering auto-rickshaw service.

A bench, headed by Justice C.M. Poonacha, gave an interim order on the petitions filed by Ola and Uber questioning the legality of the notification issued on November 25.

Through its order, the state government had restricted mobile app-based transport aggregators to collect service fees of not more than 5 per cent, plus applicable taxes, on the fixed base fare.

The court had adjourned further proceedings over the matter to January 12.

Petitioners Ola and Uber had contended that the government has got no jurisdiction to cap the prices under the Motor Vehicles Act.