Home Industry News Suspension order revoked as Ola agrees to pay Rs 15 lakh penalty

Suspension order revoked as Ola agrees to pay Rs 15 lakh penalty

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Source: ET Bureau

Chief Minister HD Kumaraswamy and Social Welfare Minister Priyank Kharge had directed transport department to resolve the issue immediately.

The Karnataka State Transport Authority on Monday revoked the suspension order on homegrown cab aggregator Ola as the ride-hailing company agreed to pay a fine of Rs 15 lakh. The penalty was levied as Ola had violated the aggregators license by running bike taxis.

“We had issued license to Ola to run cab services. They were also running bike taxi services in violation of aggregators license. Hence, we have levied maximum penalty of Rs 15 lakh. Ola has communicated to us in writing that they will pay the amount today,” VP Ikkeri, transport commissioner said.

On Friday, the authority had issued suspension order to Ola for running “illegal bike taxi services in Bengluru.” The commissioner said Ola has withdrawn bike taxi services and promised to follow the regulatory framework.

In response Ola said in a statement: We are glad that the issue stands resolved and we regret any inconvenience caused to our driver partners and passengers since Friday. We look forward to continue working with the State, to help address challenges of mobility. We are committed to creating and enhancing livelihood opportunities for millions of driver partners in the time to come.”

Chief Minister HD Kumaraswamy and Social Welfare Minister Priyank Kharge had directed transport department to resolve the issue immediately. “I convened a meeting on the directions of chief minister HD Kumaraswamy.

The chief minister wants the suspension order to be revoked and I have conveyed the same to the officials,” Karnataka chief secretary TM Vijay Bhaskar, who held separate meetings with the transport department and Ola representatives on Saturday, told ET on Sunday.

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