Ola argued in July 2025 that Karnataka’s bike-taxi ban violated the constitutional right to carry on a trade. That was the company’s submission, not the court’s decision. In January 2026, a Karnataka High Court Division Bench later set aside an earlier order and held that the blanket prohibition on motorcycle contract-carriage permits was not a reasonable restriction on the record before it.
What Ola argued in court
At a Karnataka High Court hearing on 10 July 2025, Senior Advocate Arun Kumar, appearing for Ola, said the company’s right to operate arose from Article 19(1)(g) of the Constitution, which protects the right to practise a profession or carry on an occupation, trade or business. He argued that the Motor Vehicles Act contemplated vehicle registration and permits, and that executive action could not override the statute or the constitutional right.
LiveLaw reported Kumar’s submission as follows: “Our right stems from a fundamental right under Article 19 (1) (g)…the MV Act contemplates the delegation of certain things. If there is a guaranteed fundamental right under Article 19, can it be taken away? Subordinate legislation has to be in conformity with the statute. This restriction is not by the MV Act or rules made under it. Does the executive power extend beyond the statute?”
This was Ola’s argument at the hearing. The later Division Bench ruling was a separate decision, delivered on 23 January 2026.
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How the case changed from 2025 to 2026
| Date | What happened |
|---|---|
| 2 April 2025 | A single judge partly accepted that motorcycles could be registered as transport vehicles and permitted as contract carriages, but held that aggregators could not operate bike taxis until relevant rules were framed. The order directed operations to stop. |
| 10 July 2025 | Ola’s counsel argued that the ban infringed the right to trade and could not be imposed through executive action contrary to the Motor Vehicles Act. |
| 23 January 2026 | A Division Bench allowed the appeals, set aside the single-judge order and directed the State to consider applications for motorcycle transport registration and contract-carriage permits. It also addressed aggregator licence applications and passenger access to vehicle and driver details. |
What the Division Bench held
The court treated taxi business as a legitimate activity protected by Article 19(1)(g), while recognising that Article 19(6) permits reasonable restrictions imposed by law in the public interest. It examined the State’s asserted prohibition and found no stated government policy supporting it, and no statutory rule, instrument or notification prohibiting motorcycle transport registration or contract-carriage permits.
On the record before it, the court concluded that a blanket prohibition on issuing contract-carriage permits to motorcycles was not a reasonable restriction. Its reasoning included the Motor Vehicles Act’s treatment of motorcycles as vehicles that may qualify as transport vehicles, contract carriages and public service vehicles, as well as the absence of a stated policy basis for the asserted ban.
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What the order means for motorcycles and aggregators
The practical route described by the judgment is for motorcycle owners to apply to register their vehicles as transport vehicles, commonly identified by yellow boards, and to seek contract-carriage permits. The State must consider those applications; the Indian Express reported that an application could not be rejected solely on the ground that motorcycles cannot be transport vehicles. The judgment also addressed fresh aggregator licence applications and access for passengers to details of onboarded vehicles and drivers.
This is not a ruling that a private white-board motorcycle may be used for paid passenger trips. The permit route concerns motorcycles registered as transport vehicles and operated as contract carriages. Nor does the judgment by itself establish that every applicant receives a permit or that every aggregator may operate without satisfying applicable licensing and other regulatory requirements.
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The State’s objections and earlier policy material
The State’s reported grounds for opposing bike taxis included passenger safety, congestion, the availability of public transport and pollution. These were the State’s objections; they should not be read as factual findings the Division Bench accepted as established.
The judgment discussed a State expert committee report dated 29 April 2019. The report identified possible advantages such as lower fares, shorter travel times and access on narrow roads, alongside concerns about safety, usage efficiency, dead kilometres and limited additional utility. It recommended against bike taxis in Bengaluru, but did not appear to make recommendations for the entire State.
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The court also noted Karnataka’s Karnataka Electric Bike Taxi Scheme, 2021. Its reference to the scheme does not establish that it remained in force or settled the later dispute. In considering the asserted blanket prohibition, the court found no stated government policy that established that prohibition.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Supreme Court challenge and what remains unclear
The Indian Express reported on 22 April 2026 that Karnataka had filed a special leave petition in the Supreme Court challenging the High Court judgment. At the time of that report, the petition had not been listed. That report does not establish whether the Supreme Court has listed, heard or decided the matter since; its status as of 8 October 2026 is not established here.
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The judgment directs the State to consider applications, but the available reporting does not establish how many permits were subsequently issued, how fully the State implemented the directions, or what later licensing decisions were made. The ruling therefore establishes a legal route and rejects the blanket prohibition on the record before the court; it is not proof that bike taxis were operating throughout Karnataka under issued permits.
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