Ban on Ola cabs in Bengaluru revoked a day after its announcement

ola-ban-karnataka Representational image | Reuters

A ban on the aggregator service Ola cabs, in Bengaluru, was revoked a day after it was announced. Karnataka Minister for Social Welfare Priyank Kharge tweeted that Ola will run its business as usual. "@Olacabs will run their business as usual from today. However there is an urgent need for policies to catch-up with new technologies & also industries too should work closer with Govt to help evolve policies for innovations," Kharge tweeted. 

The action had come after the company allegedly operated illegal bike taxis in the state. According to the notice: "Earlier this year, Transport Department officials had seized several bikes which were operating as bike taxis for Ola. The officials probed the case and submitted a report to the Transport Commissioner. 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.”

“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 will have to submit the original copy of the license within three days of receiving a copy of this order."