The Transport Department had directed all taxis and motor cabs in Karnataka, including app-based cabs in Bengaluru, to install fare meters as per government-notified fares.
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The Karnataka State Travel Operators’ Association (KSTOA) has urged the Transport Department to temporarily keep in abeyance its August 28, 2026, circular directing the installation of fare meters in new and existing taxi and motor-cab vehicles.
The association said the circular does not clearly differentiate between various categories of taxis, including street-hailing cabs, airport and railway-station taxis, app-based aggregator vehicles, and luxury, corporate and tourist vehicles operated by registered travel agencies on advance bookings or contractual arrangements.
The Transport Department has directed all taxis and motor cabs in Karnataka, including app-based cabs in Bengaluru, to install fare meters as per government-notified fares. RTOs have been instructed not to renew fitness certificates of vehicles that fail to comply. The directive applies to both new and existing vehicles under Rule 129 of the Karnataka Motor Vehicles Rules, 1989.
Confusion among operators
Radhakrishna Holla, president of the Karnataka State Travel Operators Association, said: “These categories operate under different permits, business models and fare structures. Applying a uniform fare-meter requirement to all such vehicles has led to confusion among operators.”
He argued that until category-wise guidelines are issued, the absence of a fare meter alone should not be grounds for denying a vehicle a fitness inspection or Fitness Certificate, preventing road-tax-paid vehicles from operating, or initiating penal action against owners or drivers.
KSTOA has requested the Transport Commissioner and the State Transport Authority to consult industry stakeholders and issue clear, category-wise guidelines before implementing the directive.
Meanwhile, officials said that the directive follows a growing number of complaints alleging that some app-based aggregators and taxi drivers are not adhering to the government-prescribed fare structure.
An official said: “Passengers are always complaining about being overcharged by aggregators and other taxi operators. Meanwhile, drivers’ unions have been demanding a uniform fare structure and a standardised revenue-sharing mechanism for app-based aggregators and other taxi operators. The installation of meters will bring uniformity in fare.”
Government-notified fare structure
The mandatory fare-meter rule will cover taxis operating across Karnataka and is expected to affect nearly three lakh taxis and cabs in Bengaluru. Under the government-notified fare structure, taxis priced up to ₹10 lakh will charge a minimum of ₹100 for the first 4 km, followed by ₹24 per km. For vehicles costing ₹10 lakh to ₹15 lakh, the minimum fare is ₹115 for the first 4 km, with an additional ₹28 per km thereafter. Vehicles priced above ₹15 lakh will have a minimum fare of ₹130 for the first 4 km, followed by ₹32 per km.
The fare structure also includes a waiting charge of ₹1 per minute. Trips undertaken between midnight and 6 a.m. will attract an additional 10% charge. Aggregators are also permitted to collect applicable GST, toll fees and other authorised charges from passengers.
Published – September 09, 2026 09:59 pm IST
