The Karnataka government has issued a show-cause notice to taxi-aggregator service Ola for overcharging its commuters just a month after it got its license to operate under the Karnataka on-Demand Transportation Technology Aggregators Rules 2016.
Ola has endorsed the new state rules in court few days ago in a case seeking to squash these rules.
Bangalore Mirror reports that the notice was issued on July 4, 2016 and that the department has given Ola a week's time to reply to it. The department also warned to either suspend or cancel the awarded licence if the aggregator fails to respond to the notice.
Speaking to Mirror, Karnataka State Transport Authority secretary HG Kumar said, “We had to issue Ola a notice after receiving complaints from the general public about charges levied on rides, which are not part of legal sanction. The state government has already fixed the maximum fare cap for cabs and violating the norms would invite action. We have not received any feedback from them till date. If they fail to reply to our notice we will take action as per the rules, which could be suspension of the licence or penalty.”
Apart from overcharging, Ola has also been pulled up for operating shuttle services in the city. The authority has said that operation of any private bus service with 12+1 or more passengers is illegal.