The Telangana Gig and Platform Workers Union (TGPWU) has filed a petition in the Telangana High Court (HC) challenging the state’s failure to regulate taxi fares under the Motor Vehicles Act, 1988. The union argued that unchecked practices by app-based taxi aggregators have left both drivers and consumers vulnerable to arbitrary and exploitative pricing.
The matter came up on September 11 before Justice K. Sarath. After hearing submissions by Senior Counsel L. Ravichander, who appeared for TGPWU, the court issued notice to the Government of Telangana.
What the petition says
The petition asserts that the government’s inaction violates Sections 67, 74 (along with the Legal Metrology Act, 2009), and 96 of the Motor Vehicles Act, 1988. These provisions empower India’s states to fix fares, grant permits as well as install and verify taxi meters, and frame rules to enforce regulation respectively.
The union maintained that by failing to act, the state created a regulatory vacuum that enabled aggregators to set prices “as per their whims and fancies”.
Moreover, the union pointed to G.O. Ms. No. 46, a government order issued by the Transport Department on December 9, 2022, which required the regulation of fares. According to TGPWU, the state’s failure to implement this order has allowed arbitrary pricing to continue unchecked.
The petition further alleged violations of Articles 14, 19, and 21 of the Constitution of India, which guarantee equality before law, the right to carry on any occupation, trade or business, and the right to life respectively.
Furthermore, it cited Section 4 of the Competition Act, 2002, arguing that dominant aggregators abuse their market power through unfair pricing practices.
Reliefs sought
TGPWU asked the HC to direct the government to:
- Fix and notify uniform fares for all contract carriages.
- Ensure installation and verification of taxi meters in such vehicles.
- Establish a monitoring and enforcement mechanism to regulate and oversee compliance with notified fares.
- Set up a grievance redressal system accessible to both drivers and consumers for transparent complaint resolution.
“This case is crucial to ensure fair wages for drivers and protect consumers from exploitative pricing by taxi aggregators. Regulation and transparency are urgently needed in the sector,” said Shaik Salauddin, Founder-President of TGPWU.
Unions push back against Aggregator Guidelines, 2025
The petition gains further importance when read alongside the central government’s Motor Vehicle Aggregator Guidelines, 2025. Released in July, the Guidelines attempted to establish a national framework for licensing and regulating ride-hailing platforms. They allow private two-wheelers to be used as bike taxis, and permit dynamic pricing: between half and double the base fare depending on demand.
However, TGPWU and the Indian Federation of App-Based Transport Workers (IFAT) criticised the…
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