‘Daylight robbery…unacceptable': Karnataka transport minister Ramalinga Reddy orders action against app-based auto aggregators for overcharging

Indian Express

7 hours ago

Amid rising complaints from commuters against app-based auto aggregators overcharging post the bike taxi ban, Karnataka transport minister Ramalinga Reddy has directed the transport commissioner to draft and implement an effective action plan—including permit cancellation and criminal cases—against offending auto drivers.
'Passengers have highlighted several violations, including demands for higher-than-fixed fares, cancellation of trips if the inflated fare is not accepted, and exorbitant charges. For instance, on June 18, 2025, the Rapido Auto app charged Rs 100.89 per km, while the same app charged Rs 184.19 for a 4 km journey. Such blatant overcharging amounts to daylight robbery and is unacceptable. Immediate and stringent action is necessary,' Reddy noted in a letter to the transport commissioner on Saturday.
He added, 'Although the transport department has already booked several cases against auto drivers for fare refusal and overcharging, complaints continue to pour in from the public. The mobile phone screenshots submitted by commuters serve as evidence of fares exceeding the prescribed limits.'
As per the auto fare revision in December 2021, the government has fixed Rs 30 for the first 2 km and Rs 15 for every subsequent km. In 2022, the Karnataka High Court order also capped aggregator commissions at 10 per cent, aimed at making fares more affordable and transparent. As per the high court order, app-based auto aggregators are allowed to charge only 10 per cent above the government-notified fare, plus 5 per cent goods and services tax.
However, app-based auto-rickshaw services (e.g., Ola, Uber, Rapido) have been criticised for non-compliance, with fares often exceeding Rs 70 for short rides (e.g., 1.5 km) due to additional charges like surge pricing, congestion fees, pickup fees or optional tips.
The complaints of exorbitant charges have reportedly increased after the bike taxi ban kicked in from June 16.
Two days ago, Bangalore Central MP P C Mohan shared screenshots on X highlighting exorbitant auto-rickshaw charges through aggregator apps, stating, 'A mere 1.5 km ride costs over Rs 70 in Bengaluru due to a complete breakdown in fare regulation. The State Government must enforce base fares, mandate meter usage, and shield commuters from app-driven cartels and digital monopolies. Overcharging has already cost citizens Rs 1,010 crore.'
He further noted, 'Since the bike-taxi ban, auto fares in Bengaluru have spiked by 50%. A 3 km ride now costs Rs 120–Rs 150, with commuters pressured to pay 'tips' of Rs 30–Rs 100 to avoid cancellations. With meters largely ignored and digital platforms unchecked, the Government must intervene to ensure fairness and accountability.' Mohan also sought a revision of auto fares, requesting Chief Minister Siddaramaiah to fix the minimum fare at Rs 35.
Revision of auto rickshaw fares sought
Meanwhile, the Autorickshaw Drivers' Union (ARDU) has submitted representations to the Bengaluru Urban deputy commissioner seeking a revision of auto rickshaw fares in accordance with the increase in the central government's Wholesale Price Index. Several other auto rickshaw unions have also proposed increasing the fares in Bengaluru, citing rising operational costs, including fuel, spare parts, and vehicle maintenance.
The unions have proposed a base fare of Rs 40 for the first 2 km (up from Rs 30) and Rs 20 for every subsequent km (up from Rs 15).
'While honest auto drivers are compelled to operate at outdated fare rates, their incomes have significantly reduced. This inaction on fare revision has inadvertently allowed a section of drivers to exploit the situation by charging arbitrarily high, often double, fares,' Rudramurthy, president of ARDU, said in a letter to the Bengaluru Urban deputy commissioner last week.
He added, 'In contrast, cities like Udupi, Mangaluru, and Shivamogga revised their rates in 2023 to Rs 40 for the first 2 km and Rs 20 per km thereafter. In Maharashtra's major cities like Mumbai and Pune, fares are as high as Rs 50 for 2 km and Rs 25 per km thereafter.'
Rudramurthy also noted that in certain parts of the city, passengers are often forced to pay inflated charges due to the absence of a legally revised fare structure. He complained that app-based auto rickshaw aggregators have exploited this vacuum by displaying arbitrary and illegal fares on their mobile platforms, resulting in routine passenger exploitation.
'Under the provisions of the Indian Motor Vehicles Act, the State Transport Authority is required to constitute a Regional Transport Authority (RTA) to oversee such fare matters. However, the deputy commissioner, who by law should serve as the chairperson of the RTA, has not been officially appointed, resulting in administrative lapses and inaction,' he said.