The Karnataka transport department has banned Ola Cab services for six months in Bengaluru city. The Bengaluru Regional Transport Office (RTO) has suspended the licence of taxi aggregator.
The department ordered immediate stoppage of its services in Bengaluru.
The company allegedly flouted the Karnataka on demand Transportation Technology Aggregators Rules 2016 by continuing illegal operation of bike taxis. The RTO had conducted an investigation following a complaint regarding the illegal bike-taxi services.
However, the order was issued by the department on Monday, the app is still functional in the city.
The notice directs Ola to surrender the licence to the authority concerned within three days of receiving the order copy.
Speaking to media, the Transport Commissioner V.P. Ikkeri said, “The Department had issued a license to Ola only to operate mobile app based taxis [motor cabs] in the city. But they were found illegally operating bike taxis. It is a clear violation of the aggregators’ rules. So action has been taken as per the rules.”
Ola Cabs runs under Ani Technologies Pvt Ltd.
The company had obtained a license to operate app-based taxi services until June 19, 2021.
In February, 500 bike taxis were seized for operating illegally in the city. Rapido and Ola were among the companies who were ordered to halt services.