Karnataka’s transport department has issued notices to cab-aggregator Ola asking them to stop operations since they have not renewed their aggregator license, which expired last month.
Additional transport commissioner Hemanth Kumar told CNBC TV18 that Ola’s license to operate in the state expired on June 19 this year.
“Ola had taken its licence in 2016 (Karnataka On-Demand Transportation Technology Aggregator Rules), which has expired on June 19, 2021. We have sent notices to them to stop their operations,” Kumar said.
Uber’s license expires in December 2021, according to Kumar.
Ola did not share responses to queries. However, company executives told CNBC TV18 that as per a notice issued in June by the Ministry of Road Transport and Highways (MORTH), they have time till September 2021 to apply for renewal of their license.
MoRT&H in its notice had allowed for the extension of documents under the Motor Vehicles Act and Central Motor Vehicles Rules till September 30, 2021.
The Additional transport commissioner of Karnataka, however, told CNBC TV 18 that the MORTH notice applies to vehicle documents and not to aggregator licenses.
Sources say that Ola made an application for renewal in early July. RTO officials also visited Ola’s office in Bengaluru last week to investigate documents for the license renewal, sources said.
Kumar did not clarify what penalty the government will impose on Ola for running its operations despite notices from the department.
(Edited by : Aditi Gautam)
First Published: IST