Ola ban in Karnataka revoked, fined for running motorcycle taxis without permission

The southern Indian state of Karnataka slapped a Rs 1.5 million fine on ride-hailing service Ola on Monday for running motorcycle taxis without permission and revoked an **earlier suspension** on its license. Bengaluru, the capital of Karnataka, is considered India’s Silicon Valley and one of its most populated cities where Ola and San Francisco-based **Uber** compete for millions of riders. [caption id=“attachment_6323351” align=“alignnone” width=“1024”] Bhavish Aggarwal, CEO and co-founder of Ola, poses in front of an Ola cab. Reuters[/caption] VP Ikkeri, the state commissioner for transport and road safety, said the ban had been lifted after the fine was imposed on Ola for operating motorcycle taxis without a permit. “We are glad that the issue stands resolved and we regret any inconvenience caused to our driver-partners and passengers since Friday,” Ola said in a statement.

We’re glad to inform that the matter regarding licensing in Karnataka is fully resolved. We're committed to working with the Govt. to enhance livelihoods of thousands of driver partners & facilitate mobility needs of millions of people. Appreciate your continued faith & support.

— Ola (@Olacabs) March 25, 2019

Despite the ban, users in Bengaluru reported that they were still able to book a taxi or an auto-rickshaw through Ola’s app over the weekend. Ola’s permit, obtained in 2017 and valid through 2021, allows it to run three and four-wheeler taxis in Karnataka. The company, backed by SoftBank Group Corp and Tencent Holdings Ltd, ran the risk of having to give up its permit in the state.