Karnataka transport minister Ramalinga Reddy has instructed the state transport commissioner to take immediate and stringent action against app-based auto-rickshaw aggregators found charging passengers fares above the government-prescribed rates.In an official letter dated June 28, the minister cited specific incidents of overcharging and directed the transport department to cancel the permits of violators, register criminal cases against guilty drivers and vehicle owners, formulate a swift action plan to safeguard public interest, and take stern measures against operators demanding inflated fares.
The department has been ordered to implement the action plan without delay to curb what Reddy described as the “systematic overcharging of passengers beyond government-prescribed rate”.The directive follows a surge in public complaints against ride-hailing platforms allegedly demanding fares higher than the government-fixed rates and canceling rides when passengers decline to pay inflated amounts. The issue has reportedly worsened since the state government’s ban on bike-taxis, which came into effect on June 16.
As per current regulations, the government-approved auto fare in Bengaluru is Rs 30 for the first two kilometers and Rs 15 for every additional kilometer. The first five minutes of wait time are free, with a charge of Rs 5 for each additional minute thereafter. Furthermore, service charges for app-based aggregators are capped at 5% plus applicable GST on the base fare.“Whether it is app-based autos or any other type of autos, which are charging more than the fare fixed by the government, strict action should be taken against such people,” Reddy wrote in his letter to the transport commissioner.
The minister cited clear evidence of fare violations. On June 18, a passenger was allegedly charged Rs 100.89 per kilometer, and on another ride via the same app, Rs 184.19 for a 4-kilometer journey—amounts that far exceed the prescribed rate of Rs 15 per kilometer beyond the initial two kilometers. He condemned such pricing as “daylight robbery from the public”.The letter, which includes mobile screenshots from multiple app-based aggregator platforms submitted by affected commuters, highlights the widespread nature of the issue in Bengaluru and other regions of Karnataka.
Reddy also noted that although the transport department has been registering cases against auto drivers who refuse to accept the fixed fare and demand more, public complaints continue to flood in. The directive is expected to have significant implications for major ride-hailing platforms operating in Karnataka, including Uber, Ola, Rapido, and Namma Yatri.