The Transport Department of Karnataka has suspended the license of Ola for the next six months. App-based cab aggregator Ola cannot run taxis and autos in Karnataka for the next six months, the state transport department has said in a notification. The order of suspension of Ola Cabs for six months in Karnataka was issued on March 18.
The Transport Department of Karnataka said that the company will have to submit its license within three days after receipt of its order. At the same time, it has to stop its taxi booking service immediately from Friday. Ola Cabs license was suspended for six months by Karnataka's transport department with immediate effect. The department said that the move came after Ola-operated bike taxis violating rules and did not respond to the department's notices.
The notification came to the light as the cab-aggregator issued a statement on the suspension of license saying it is "evaluating the options to find an amicable solution wherein hundreds of thousands of driver-partners in the state of Karnataka can continue to work and serve the mobility needs of our citizens."
Earlier this year, Transport Department officials had seized several bikes which were operating as bike taxis for Ola. The officials probed the case and submitted a report to the Transport Commissioner. According to Section 11 (1) the Karnataka On Demand Transportation Technology Aggregators Rules 2016, the Transport Department can decide to cancel the license of the cab aggregator as there is a violation of rules," a chunk of the notice read.