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Stop bike taxi ops in 6 weeks: Karnataka HC to Ola, Uber & Rapido
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BENGALURU: In a setback for Rapido, Ola and Uber, Karnataka high court Wednesday directed them to stop operating bike taxi services in six weeks.
Justice BM Shyam Prasad gave the direction while disposing of their petitions filed in 2022-23, seeking direction to the state govt for the issuance of aggregator permits.
The judge issued a direction to the state govt to ensure the petitioners stop their bike taxi services within the time specified in the order. Unless the state govt notifies relevant guidelines under Section 93 of the Motor Vehicles Act and the rules framed thereunder, the petitioners cannot operate bike taxi services, and no directions can be issued to the state govt to consider their applications seeking grant of aggregator permits or licences, the judge said in his order.
However, the judge mentioned that it is always open to the state govt to take measures -- framing guidelines for bike taxi services.The petitioners had sought a direction to the state govt to take action to permit the registration of motorcycles as transport vehicles having yellow registration plates in terms of the Motor Vehicles Act and Rules. Further, a direction was sought to the authorities not to interfere with the bike taxi service business of the petitioner companies.
Opposing the petitions, the state govt argued the petitions are not maintainable as the petitioners were using privately owned motorcycles, which are meant for personal use of their registered owners, to operate bike taxi services.
The state govt further contended that the applications sent through email were not received by the transport department and added that the petitioners are at liberty to submit applications to the prescribed authority with regard to a licence to operate an electric bike taxi scheme, which was finalised in 2021."
The application filed for the grant of a licence under Karnataka On-Demand Transportation Aggregator Rules 2016 cannot be considered as there is no provision to grant a licence for the motorcycle taxi aggregator," the state govt further argued."The petitioners are using non-transport two-wheelers as transport vehicles carrying a pillion rider for hire and reward without converting them into transport vehicles.
The ride-sharing model using motorbikes is not permitted under Section 66 of the Motor Vehicles Act. Section 66 disallows the use of any vehicle as a transport vehicle in a public place except in accordance with the permit granted or countersigned by the Regional Transport Authority or the State Transport Authority," the state govt contended while seeking dismissal of the petitions.
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Double whammy: Bengaluru airport cab crunch deepens as BluSmart, Refex pull out
Passengers travelling to and from Kempegowda International Airport face a double whammy as two electric cab operators, BluSmart and Refex eVeelz, halt services.
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Passengers using Kempegowda International Airport (KIA) in Bengaluru, already grappling with a shortage of Ola and Uber cabs, are now facing a double-whammy as two electric cab operators—BluSmart and Refex eVeelz—have ceased operations.
BluSmart, a ride-hailing startup linked to Gensol Engineering, has abruptly stopped accepting new ride bookings across major parts of Delhi-NCR, Mumbai, and Bengaluru. This move follows a probe by the Securities and Exchange Board of India (SEBI) into Gensol Engineering, raising serious questions about BluSmart’s viability.
Meanwhile, Refex Green Mobility Ltd (RGML), a subsidiary of Refex Industries, has confirmed that it is streamlining its operations in Bengaluru by phasing out its airport-based EV taxi services. These services were run via Refex EV Fleet Services. “The move aims to focus on scaling electric mobility solutions for enterprise and institutional clients through long-term partnerships and stable demand,” the company said.
Interestingly, both Refex and BluSmart have a linkage. Earlier this year, Refex Green Mobility had announced a Rs 315 crore deal to acquire 2,997 electric vehicles from Gensol Engineering, with plans to lease them to BluSmart. However, Refex later withdrew the proposal, citing “evolving commitments” on both sides.
Travellers hit
Kempegowda International Airport handled 41.88 million travellers in the last financial year, up from 37.53 million the previous year—an 11.6 percent increase. Despite this growth, the availability of airport cabs continues to be a challenge, with frequent complaints of long waits and inadequate fleets at the designated Ola-Uber pick-up zones.
Bangalore International Airport Ltd (BIAL), which operates KIA, was unavailable to comment.
Sources said the exit of both Refex and BluSmart is likely to compound the shortage. “BIAL tied up with Refex and commenced services in June 2024. They had also introduced pink taxis driven by women, exclusively for female passengers. BIAL had ended partnerships with earlier operators like Meru and Mega in favour of Refex. Now, with both Refex and BluSmart halting operations, it’s causing inconvenience to passengers,” a source said.
Another source added that airport taxis operated through BIAL’s official 'BLR Pulse' mobile application were mostly linked to Refex, which had a 100 percent electric fleet. "Many passengers who couldn't find cabs via Ola and Uber relied on BluSmart and Refex, and are now the most affected. These services were also environmentally friendly," the source added.
In March 2023, BluSmart Mobility launched a dedicated cab pickup zone at Bengaluru airport, following Ola and Uber. Other aggregators like Rapido, Namma Yatri, QuickRide and Shoffr do not have a dedicated pickup zone at the airport. However, dedicated airport taxi services such as Refex and KSTDC are allowed to pick up passengers directly in front of the terminals.
However, a BIAL official said that passengers can continue to book rides through Ola, Uber, Karnataka State Tourism Development Corporation (KSTDC), WTi rental cabs, as well as BMTC’s Vayu Vajra and KSRTC’s inter-city Flybus services.
In a statement, Refex said: “Refex continues to offer high-quality mobility services through its integrated B2B and B2B2C EV platform, featuring company-owned EVs, trained driver partners, and a tech-driven operations framework. Since its launch in March 2023 with 24 vehicles, Refex’s Green Mobility vertical has grown to nearly 1,300 EVs. We serve Bengaluru, Chennai, Hyderabad, and Mumbai across use cases such as employee transport, corporate rentals, airport transfers, and partnerships with leading ride-hailing platforms.”
BluSmart rebrands itself as Uber Green in Bengaluru: Report
BluSmart, which is co-founded by Gensol’s Anmol Singh Jaggi, is in discussions with Uber India to lease out 8,000 to 1,000 EVs under the Uber Green brand.
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BluSmart cabs have been rebranded as Uber Green with their liveries changed.BluSmart, once seen as a competitor to Uber and Ola in India’s electric ride-hailing space, has been rebranding its fleet under Uber Green, as per a report by NDTV Profit. The move comes after the company halted cab bookings across Delhi-NCR, Bengaluru and Mumbai due to a major financial fraud, involving its financial backer Gensol Engineering, that SEBI had flagged this week. The company, which took a Rs 900 crore loan for EVs, has allegedly diverted Rs 262 crore to purchase a DLF Camellias flat.
NDTV Profit reported that BluSmart, which is co-founded by Gensol’s Anmol Singh Jaggi, is in discussions with Uber India to lease out 8,000 to 1,000 EVs under the Uber Green brand. The company has been changing the livery of a few cabs to Uber Green, the outlet quoted that a taxi driver in Bengaluru confirmed.
Company’s email to employees
As part of the transition, the drivers were instructed to stop accepting bookings for three-four days due to an internal “audit”. NDTV Profit reported that as many as 200 cabs are sitting idle at a charging facility in Bengaluru’s Sarjapur.
The company, in an email to employees per the outlet, said, “Due to vehicle audits, operations will be temporarily halted for the next few days starting tomorrow.”
It added, “As soon as the audit is completed and operations resume, you will be called back immediately. You will receive a message for slot booking.”
Company to customers after Gensol fraud
In an email to its customers, the company said, “We’ve decided to temporarily close bookings on the BluSmart app. We truly appreciate your support. While we strive to be back soon to serve you with the same warmth and smile, we will initiate a refund within the next 90 days if services do not resume before then.”
Although users can still download the app, all booking slots remain marked as unavailable.
What is Gensol Engineering fraud?
SEBI, in a 20-page interim order, stated that Gensol diverted Rs 262.13 crore from a Rs 663.89 crore EV loan from IREDA and PFC to procure 6,400 EVs. However, they only bought 4,704 EVs worth Rs 567.73 crore and diverted the remaining funds through a former employee’s company, Wellray Solar Industries, to related parties, including large transfers to the Jaggi brothers for personal use.
Wellray Solar Industries, a company owned by a former Gensol employee, was functioning as the main organisation to move funds. It received Rs 424.14 crore from Gensol over two financial years and transferred Rs 246.07 crore to Gensol-related parties, including Rs 25.76 crore directly to Anmol and Rs 13.55 crore to Puneet.
SEBI noted that a company called Capbridge Ventures LLP paid Rs 42.96 crore to DLF for the apartment. The company, in which both Jaggi brothers are partners, received funds from Go-Auto, which on the same day received Rs 93.88 crore from Gensol. Gensol received Rs 71.41 crore from IREDA and Rs 26.06 crore from another account.
The advance booking for the flat was paid by Anmol’s mother, Jasminder Kaur, using Gensol’s funds. When they got their advance amount back, they diverted it to Matrix Gas and Renewables, another Jaggi-controlled entity.
Further transactions included the purchase of a Rs 26 lakh golf set, over Rs 1.8 crore in foreign currency (AED), Rs 17.28 lakh to Titan Company, spa sessions worth Rs 10.36 lakh, and an investment of Rs 50 lakh in Ashneer Grover’s startup, Third Unicorn.
SEBI also revealed that Wellray handled 99% of its trading in Gensol’s stock, conducting over ₹338 crore in share transactions from November 2022 to November 2024. These trades were allegedly funded by Gensol itself, inflating the company’s stock value artificially.
The probe began in June 2024 after SEBI received complaints about stock manipulation and fund diversion. During a site visit to Gensol’s Pune plant, officials found no manufacturing activity, despite the company’s claims of receiving 30,000 pre-orders for a new two-seater EV. Electricity bills suggested minimal operations, with consumption under Rs 1.6 lakh monthly.
‘…our job is to punish them’: SEBI Chair
“There will be companies like Gensol in the system. Sebi’s job is to find and punish them,” SEBI Chairperson Tuhin Kanta Pandey was quoted by India Today as saying.
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Bengaluru Civic Body BBMP Dissolved After 17 Years Of Existence; What Changes And What’s Ahead
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BBMP Dissolved: After an assent from Karnata Governor Thawarchand Gehlot on Wednesday, the Bruhat Bengaluru Mahanagar Palika (BBMP) ceased to exist. The Karnataka Governor has approved the Greater Bengaluru Governance Act 2024 (GBGA), effectively sounding the death knell for the BBMP after a short life of 17 years.
According to a report published in Times Now, the new legislation paves the way for a three-tiered civic governance model, aiming for decentralised governance across the city and surrounding areas. It was notified in the state gazette on Thursday.
What Changes Now
The BBMP ceases to exist under the new act, placing the Greater Bengaluru Authority at the top of the civic bodies' pyramid. Seven small city operations will work under it, with small committees at the grassroots level.
The GBA will be headed by the Chief Minister and will serve as a coordinating body, bringing together 19 key members, including representatives from Namma Metro, the traffic police, BESCOM, and elected MPs, MLAs, and MLCs – all of whom will have voting rights. An IAS officer of Principal Secretary rank or higher will serve as the Chief Commissioner.
What’s Ahead for Bengaluru
The GBA will oversee governance and developmental activities across an expanded metropolitan area, likely absorbing around 25 developed panchayats from Bengaluru's periphery, as per a DH report.
The Greater Bengaluru Authority (GBA) will collaborate with newly formed city corporations, each bearing the "Bengaluru" prefix (e.g., Bengaluru South City Corporation, Bengaluru East City Corporation). While operating independently within their jurisdictions, these corporations will align their strategies with the GBA's overarching policies.
Currently, the BBMP governs 198 wards across Bengaluru's vast urban sprawl. Under the new legislation, the city will be divided into three to five separate corporations.
