In a significant judgment delivered on Friday, the Karnataka High Court declared that the state's blanket prohibition on bike taxi services violates Article 19(6) of the Indian Constitution. This article protects the right to carry on any trade or business, subject only to reasonable restrictions imposed by the state in the interest of the general public. A division bench led by Chief Justice Vibhu Bakhru and Justice C.M. Joshi overturned an earlier single-judge order from April 2025 that had halted bike taxi operations until the government framed specific guidelines. The court emphasized that such a total ban goes against the spirit of the Motor Vehicles Act, 1988, which explicitly allows motorcycles to be registered as transport vehicles capable of carrying passengers for hire.
The ruling came in response to appeals filed by major ride-hailing companies like Ola, Uber, and Rapido, who challenged the state's restrictions. These platforms had been operating bike taxi services, providing affordable last-mile connectivity in Bengaluru's congested traffic. The court pointed out that no statutory rules or notifications exist to prevent motorcycles from being used as contract carriages or motor cabs under the MV Act. It rejected the government's argument that motorcycles inherently fall outside these definitions, noting a 2004 central government notification that contemplates motorcycles carrying one pillion passenger for hire.
At the heart of the decision is the interpretation of the Motor Vehicles Act, which falls under Entry 35 of List III in the Seventh Schedule of the Constitution, giving both central and state governments concurrent powers. The bench held that state actions cannot contradict the Act's legislative intent. "A blanket prohibition on issuing contract carriage permits to motorcycles cannot be considered as a reasonable restriction within the meaning of Article 19(6) of the Constitution of India for several reasons," the court observed, stressing that the state must regulate rather than outright prohibit lawful activities.
A blanket prohibition on issuing contract carriage permits to motorcycles cannot be considered as a reasonable restriction within the meaning of Article 19(6) of the Constitution of India for several reasons. The MV Act permits such use, and failure to frame rules cannot justify a de facto ban on legitimate business.
The judges highlighted the absence of credible evidence justifying the ban. They noted that the state itself had previously acknowledged the need for bike taxis, especially in areas lacking public transport. References were made to a 2019 expert committee report and operations in other states like those permitted by the Chandigarh Regional Transport Authority. The court clarified that while safety and traffic management concerns are valid, they warrant conditions on permits under Section 74 of the MV Act, not a complete shutdown. This approach aligns with the Central Motor Vehicle Aggregator Guidelines, 2025, which allow bike taxis subject to state approval.
The verdict opens the door for motorcycle owners to apply for yellow-board registration as transport vehicles and contract carriage permits. The high court directed the state government to process these applications without undue delay, potentially reviving a service popular for its affordability and ability to weave through Bengaluru's notorious traffic jams. Industry players have welcomed the move, seeing it as a boost for drivers' livelihoods and commuters' options. Uber, for instance, described bike taxis as a "vital mobility lifeline" for Indian cities, offering convenience where traditional cabs struggle.
However, the court stopped short of mandating immediate operations, leaving room for the state to impose regulatory measures like aggregator licensing under Section 93 of the MV Act. This balance aims to address concerns over road safety and unregulated growth while upholding constitutional rights. Bike taxis had been banned in Karnataka since June 16 of the previous year, following the single-judge order, disrupting a sector that had gained traction amid rising demand for quick, eco-friendly rides—especially electric ones promoted in earlier state schemes.
As Bengaluru grapples with urban mobility challenges, this ruling could set a precedent for other states. It underscores that innovation in transport cannot be stifled without solid justification, pushing governments toward frameworks that support rather than suppress emerging services. The decision reflects a broader judicial trend favoring reasonable regulation over blanket prohibitions in the gig economy space.
In summary, the Karnataka High Court's ruling affirms bike taxis as a legitimate business protected under Article 19(1)(g), invalidates the state's total ban as unreasonable, and mandates fair processing of permits, paving the way for regulated operations to enhance city connectivity.
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