After commuters complained about overcharging, the state transportation department declared the services unlawful. Commuters have complained that Ola and Uber charge a minimum of Rs 100 for distances of less than 2 kilometres.

The minimum auto rate in Bengaluru is Rs 30 for the first 2 km and Rs 15 for each mile after that. If companies do not comply with the directive, the department has threatened legal action.

Ola, Uber, and Rapido auto-rickshaw services in Karnataka would be halted within three days. This comes after the Karnataka transport department issued an order on Thursday declaring the motor services supplied by these ride-hailing platform businesses “illegal.”

Under the On-Demand Transportation Technology Act 2016, the administration has declared that cab aggregators’ vehicle services are ‘illegal.’ Vehicle aggregators have been asked to produce a report.

Several commuters have filed complaints with the transport department over Ola and Uber charging a minimum of Rs 100 even if the distance is less than two kilometres, according to the transport department. The minimum auto rate in Bengaluru is Rs 30 for the first 2 kilometres and Rs 15 for each subsequent kilometre.

Meanwhile, Transport commissioner THM Kumar has said they have granted licences to these firms under the Karnataka On-Demand Transportation Technology Aggregators Rules, 2016, to run only taxis. The rules do not apply to autos.

“Taxis means a motor cab having a seating capacity not exceeding six passengers, excluding the driver,” he added,

On September 9, the Competition Commission of India (CCI) issued a warning and requested Indian cab aggregators (CAs) such as Ola, Uber, and Meru to develop clear and open regulations regarding the sharing of money from surge pricing between drivers and CAs.

“The aggregators are providing autorickshaw services in violation of the above regulations. Also, it has come to the notice of the department that customers are being charged higher rates than the rates fixed by the government,” the letter added.

L Hemanth Kumar, additional commissioner for transport and secretary, State Transport Authority, echoed the same saying, “They are not supposed to run auto rickshaws with a cab-aggregator licence.” Aggregator rules are only for cabs. We’ve asked them to stop auto rickshaws services through the app and submit a report,” he added.