Bengaluru, Jan 4: The Karnataka High Court on Wednesday placed an interim stay on the state government order, capping service charge at 5 per cent for app-based aggregators offering auto-rickshaw service.

A bench, headed by Justice C.M. Poonacha, gave an interim order on the petitions filed by Ola and Uber questioning the legality of the notification issued on November 25. Karnataka Govt Meets With Uber, Ola, Rapido Over High Auto-Rickshaw Fares; Rickshaw Union Terms It ‘Eye Wash’.

Through its order, the state government had restricted mobile app-based transport aggregators to collect service fees of not more than 5 per cent, plus applicable taxes, on the fixed base fare. Old, Uber Auto-Rickshaw Ban: Karnataka Government Seeks Four Weeks’ Time From High Court To Discuss Banning of Services of Autos.

The court had adjourned further proceedings over the matter to January 12.

Petitioners Ola and Uber had contended that the government has got no jurisdiction to cap the prices under the Motor Vehicles Act.

(The above story first appeared on LatestLY on Jan 04, 2023 07:57 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).