In a closely watched decision affecting bike taxi operators and aggregators like Ola, Uber and Rapido, the Karnataka High Court has ruled that motorcycles can legally be treated as transport vehicles, but bike taxi services cannot operate unless the State frames clear rules permitting them. The verdict came in a batch of appeals challenging earlier orders that had stalled bike taxi operations across the state.
Background of the Case
The case arose from multiple writ petitions filed by app-based aggregators and bike owners after Karnataka authorities refused to permit bike taxis. Companies like Ola, Uber, and Rapido argued that the Motor Vehicles Act, 1988 allows motorcycles to be registered as transport vehicles and used for carrying passengers for hire.
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They relied on Central Government notifications and guidelines, including a 2024 clarification by the Ministry of Road Transport and Highways (MoRTH), which stated that motorcycles fall within the definition of “contract carriage.”
The State government, however, opposed this view. It maintained that in the absence of specific state rules, bike taxis could not be allowed due to safety, regulatory, and policy concerns.
What the Court Examined
A Division Bench comprising Chief Justice Vibhu Bakhru and Justice C.M. Joshi examined:
- Whether motorcycles can legally be treated as transport vehicles
- Whether bike taxis can operate without a State policy
- Whether aggregators have a vested right to run bike taxi services
- The scope of the Motor Vehicles Act and Central notifications
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The court closely analysed provisions of the Motor Vehicles Act, 1988, Central Motor Vehicle Rules, and government notifications dating back to 2004.
Court’s Observations
The Bench made it clear that motorcycles are capable of being classified as transport vehicles under the law.
“The Motor Vehicles Act does not prohibit the use of motorcycles as contract carriages,” the court observed.
Referring to the 2004 Central Government notification and the 2024 clarification, the court noted that motorcycles used to carry a pillion rider for hire fall within the definition of a “contract carriage.”
However, the judges drew a crucial distinction.
“The right to operate a bike taxi is not automatic. It depends on the regulatory framework framed by the State,” the bench said.
The court accepted the State’s argument that policy decisions on whether to permit bike taxis fall within the government’s domain, and courts cannot compel the State to allow such services without a notified framework.
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On Aggregators Like Ola, Uber, and Rapido
The Bench clarified that holding an aggregator licence does not automatically allow companies to operate bike taxis.
“The licence under aggregator rules does not extend to categories of vehicles not specifically permitted,” the court noted.
It also observed that Karnataka has not yet notified rules under Section 93 of the Motor Vehicles Act for regulating bike taxi services.
Until such rules are framed, the State is within its rights to refuse permissions.
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Final Decision
The High Court upheld the earlier single-judge order and ruled that:
- Motorcycles can legally be classified as transport vehicles
- But bike taxi services cannot operate without State-approved rules
- Courts cannot direct the State to allow bike taxis in the absence of a policy
- Aggregators have no automatic right to run bike taxi services
The appeals were accordingly disposed of, leaving it to the Karnataka government to decide whether and how bike taxis should be permitted in the future.
Case Title: Roppen Transportation Services Pvt Ltd & Ors. v. State of Karnataka
Case No.: WA No. 906 of 2025 with connected appeals
Decision Date: 23 January 2026















