Ola gets nod from Karnataka govt to resume operations

The Karnataka State Transport Authority on Monday revoked its six-month suspension order on cab aggregator Ola on the condition that it pays a fine of Rs. 15 lakh. The State Transport Department had suspended Ola’s licence on Friday for allegedly running an illegal bike-taxi service in Bengaluru.

Transport Commissioner VP Ikkeri told BusinessLine that Ola has paid up the fine of Rs. 15 lakh imposed on it for running illegal bike-taxi services, in clear violation of the cab aggregator’s licence. “We had given Ola enough time to comply with the law and took action only when it continued to flout the law. We have also issued a notification to Rapido to stop its bike-taxi operations and will wait for seven days before starting enforcement.”

Ola in a statement on Monday said, “We are glad that the issue stands resolved and we regret any inconvenience caused to our driver-partners and passengers since Friday. We look forward to continue working with the State to help address the challenges of mobility. We are committed to creating and enhancing livelihood opportunities for millions of driver-partners in the time to come.”

In an order dated March 18, the State Transport Department said the licence issued to Ola up to June 19, 2019, has been suspended and that Ola’s services must be withdrawn within three days of receiving the order.