What’s Next for Rapido, Ola and Uber in Tamil Nadu? HC Seeks Answer

The Madurai Bench of the Madras High Court has directed the Tamil Nadu government to take an early policy decision on whether app-based bike taxi services should be permitted in the state. The observation came during the hearing of a public interest litigation filed by Madurai resident Naveen Kumar, who sought a regulatory framework for services operated through digital platforms such as Rapido, Ola and Uber. The Bench of Justices Karthikeyan and Sakthivel asked the Transport Department to file a detailed response and adjourned the case for further hearing, emphasizing the need for clarity on the issue.

Hearing Highlights

Naveen Kumar, Madurai Bench of Madras High Court, Tamil Nadu Government, Transport Department, Rapido, Ola, Uber

Need for a regulatory framework, policy decision pending, detailed government response sought, hearing adjourned

Government proposes committee review, no permission until policy decision, penalties for violations, petitioner cites Central Government guidelines

Safety concerns raised by judges, liability during accidents questioned, action against drivers continues, regulatory clarity sought

In the petition, Naveen Kumar argued that app-based bike taxi services have become increasingly popular and beneficial to commuters, but Tamil Nadu lacks a legal framework to regulate them. He contended that while digital platforms continue to operate, bike taxi riders face penalties, vehicle seizures and criminal proceedings under the Motor Vehicles Act due to the absence of clear state regulations. He requested the court to direct the government to frame rules, issue licences and allow lawful operation of bike taxi services, besides seeking interim protection against enforcement action.

The State informed the court that a committee would examine the issue before any final decision is taken and maintained that bike taxi operations are not currently permitted in Tamil Nadu. It further stated that penalties would continue against those operating in violation of existing rules. During the hearing, the judges questioned why adequate public awareness had not been created and asked who would be held responsible if an accident involving a bike taxi occurred.

Counsel for the petitioner argued that the Central Government has already issued enabling guidelines for bike taxi services and that the State should regulate rather than prohibit such operations. The court ultimately advised the Tamil Nadu government to take a prompt policy decision on permitting or prohibiting bike taxi services and directed the Transport Secretary to submit a comprehensive response before the next hearing.

The Madurai Bench confirmed that the Transport Department must file its detailed policy response before the matter is taken up again.