In a big relief to cab aggregator Ola, the suspension of license of Ola cabs for six months by the transport authority in Bengaluru will be lifted.

Karnataka Minister for Social Welfare Priyank Kharge told TNM that Ola cabs will run their business as usual starting from Sunday, just two days after the Regional Transport Office issued a suspension notice for Ola in Bengaluru, for running illegal bike taxis.

Taking to Twitter, Kharge wrote, “@Olacabs will run their business as usual from today. However there is an urgent need for policies to catch-up with new technologies & also industries too should work closer with Govt to help evolve policies for innovations.”

The minister, in another tweet responding to a user complaint about the state-wide ban, indicated that the decision to resolve the issue was made after a meeting with Karnataka Chief Minister HD Kumaraswamy and his deputy G Parameshwara.

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On Friday, Karnataka government had issued a notice to suspend Ola's licence for six months for violating government rules by running motorcycle taxis which are not allowed for safety reasons. Hours after the ban, Ola responded to the order calling it "unfortunate", adding that it was evaluating all options to find an "amicable solution" and was working closely with the authorities.

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Ola started running bike taxis in certain pockets of Bengaluru in January this year. Following this, a show-cause notice was issued by the state to which Ola responded asking permission for 4-month pilot project. The cab aggregator has reportedly invested about $100 million in a domestic scooter sharing start-up company called Vogo which offers services in Bengaluru and Hyderabad.