Uber Case: Karnataka High Court Questions Government on Stifling Startup Business

Advertisement
By Press Trust of India | Updated: 4 August 2016 13:34 IST
The Karnataka High Court Wednesday questioned the state government on "stifling" the startup business through regulatory norms that create an "unviable" environment while wanting to encourage startups.

"On the one hand, you (government) want to encourage startups in the state and, on the other, you want to stifle its business by framing rules like the Karnataka On-Demand Transportation Aggregators' Rules (OTTA)," Justice Raghavendra Chouhan said during the hearing of a petition by cab aggregator Uber.

Justice Chouhan made the observations while questioning the submissions made by A S Ponnanna, Counsel for the state who defended OTTA rules.

Advertisement

Uber had moved the court after the transport department impounded the vehicles for not securing licences under the new norms. It also suspended operations of taxis, which led to protests by drivers.

Justice Chouhan said the rules would create an unviable environment for startups and would have repercussions for investments in the state.

"If we have such regulatory rules, it will create an unviable environment for startup business in the state.

Startup companies like Uber may pull out of business in the state, which will not be good. It will have a negative impact or repercussions on investments," he said.

Advertisement

Earlier last month, Uber's Counsel Sajan Poovayya had submitted that since taxi-hailing app Uber is a technology platform that connects drivers with passengers, it cannot be regulated under India's Motor Vehicles Act, which governs taxis and aggregators in the country.

The hearing in the matter will continue tomorrow. Drivers have also independently filed a petition in court.

Advertisement

The transport department had in April increased the penalty for cab aggregators from Rs. 1,000 to Rs. 5,000, alleging they were operating without obtaining necessary licence despite its repeated warnings.

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: Apps, Cabs, Startups, Uber, Uber India
Advertisement

Related Stories

Popular Mobile Brands
  1. Free Fire India Set to Launch in India on This Date
  2. OnePlus Ace 7 Series Camera Details Revealed Ahead of Launch
  3. iQOO Neo 12, iQOO Pad Pro Spotted on Geekbench Ahead of Launch
  4. Motorola Edge 70 Neo Colour Options, Specifications Tipped
  1. WhatsApp Is Reportedly Working on a New Settings Menu for Android Users
  2. Anthropic Says Mythos 5 Used Fake Identities to Get Malicious Code Approved on GitHub
  3. Binance Pursues Brazilian Regulatory Approval Ahead of October 30 Deadline
  4. iQOO Neo 12, iQOO Pad Pro With Snapdragon 8 Elite Gen 5 SoC Spotted on Geekbench Ahead of Launch
  5. X Appears to Be Nudging Users to Pay to Promote Posts With a Giant Hand Graphic
  6. Ethereum Resolves Glamsterdam Bug That Could Have Redirected Staking Deposits
  7. Bloober Team's Silent Hill Remake Is Reportedly Targeting Launch in 2027
  8. MacBook Pro (2026) Launched in India With 14-Inch OLED Display, Apple’s M6 Chip: Price, Specifications
  9. iMac (2026) With M6 Chip, 4.5K Retina Display and Apple Intelligence Launched in India: Price, Specifications
  10. Oppo Find X10 Forest Green Edition Pricing and Availability Details Announced: Specifications, Features
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.