Can’t regulate Ola, Uber for charging less than govt prescribed rates: HC

A division bench comprising Justice S Manikumar and Justice Subramonium Prasad said, “Going through the material on record, it is clear that the grievance of the petitioner and auto drivers is that the rates of fare fixed by the companies islower than what is fixed by the government and that it affects their avocation.

“On the facts and circumstances of the case, we can only observe that if the petitioner/auto owners or drivers, as the case may be, are also willing to operate their vehicles at the rates on a par with the rates offered by the companies, passengers would also travel in their vehicles,” the bench added while dismissing the plea as being devoid of merits and not warranting any direction.

The petitioner K Rajkumar had contended that contrary to rules, corporate companies like Ola and Uber have entered public services by operating call taxis and autos. They fixed the tariff based on their own whims and fancies, the petitioner alleged.

Noting that both the companies were offering lower rates in a bid to monopolise the field, he submitted that a response by the Transport Secretary to a query under Right to Information Act, clearly revealed that no license or permit have been issued to both these companies. However, the bench cited the submissions made by the State government under Chapter V of the Motor Vehicles Act, 1988, and said, “From the averments, it could be deduced that the two transport companies havenot fixed the rates of fare over and above the rates fixed by the government and therefore, no permission is required from the government.”

The bench also recorded the submission of the Transport Department that there was no prohibition under any statute for any person or a company to own and operate vehicles for transport purposes, and registration was done under the Companies Act and not by the government or the Transport Commissioner.