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Synopsis

The Karnataka High Court on September 30, 2024 slammed OLA, which provides ride-hailing services, for lack of concern for safety of riders. 

The bench of Justice M G S Kamal said that although OLA claims that it provides necessary training to its ‘driver partners’ and it is safe to use its services, these assurances remain only on its portal without there being any action on the ground.

"These assurances and representations made by OLA without any intention or actions to implement, as is evident in this case, are nothing short of inducing customers to opt for the travel using its services on empty assurance of OLA owning complete responsibility of safety and security of the customer, only to remain non-communicado and non-responsive when it matters the most," said the single judge bench while dealing with a sexual harassment case involving an OLA cab driver. 

Court ordered ANI Technologies, the parent company of OLA Cabs, to pay a woman Rs 5 lakh in compensation for sexual harassment by one of their drivers during a trip in 2019.

Court noted that during the course of proceedings in the matter, OLA accepted 'driver-swapping' incidents being a common phenomenon. 

"OLA admittedly neither taking any steps to curb the same nor bothering to bring the same notice of the authorities would further indicate that OLA has least priority in the matter," court stressed.

Further, court highlighted that OLA is operating its vast business even without possessing a valid Licence as mandatorily required under the Aggregators Rule 2016.

According to a notice from the Karnataka State Transport Authority dated August 16, 2024, OLA had applied for a license under the Aggregators Rules 2016 and was granted one for five years. However, that five-year period has expired, and OLA’s renewal application is still pending.

In this context, the court held the Karnataka State Transport Authority and its responsible officers equally guilty of deliberate inaction and negligence in discharging their statutory obligations for proper implementation of the Motor Vehicles Act, Rules 1988, and the Aggregators Rules 2016, which are intended to prevent and prohibit sexual harassment of women.

A writ petition was moved before the high court by a woman who alleged sexual harassment by an OLA cab driver in 2019, claiming her complaint to ANI Technologies went unaddressed. The company's Internal Complaints Committee (ICC) had refused to investigate the matter, stating it lacked jurisdiction based on external legal counsel's advice.

Consequently, the woman sought high court's direction for the company to investigate her complaint and urged the Union Ministry of Women and Child Development to ensure OLA's compliance with the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH Act).

Additionally, she requested the state government to implement rules for the protection and safety of women and children using taxi services.

Along with a direction to ANI Technologies to pay the woman Rs 5 lakh compensation, the high court ordered the company's ICC to conduct an inquiry into the woman's complaint as per the POSH Act, to be completed within 90 days with a report submitted to the District Officer. Court emphasized that the identities of those involved must remain confidential as per Section 16 of the POSH Act.

Additionally, court directed ANI Technologies to pay Rs 50,000 in litigation expenses as well. 

Apart from that, court directed the Karnataka State Transport Authority to process ANI Technologies' application for license renewal under the Aggregators Rules 2016, considering court's observations made in the current order.

Court stated that the authority must complete this process within 90 days of receiving a certified copy of the order, ensuring that ANI Technologies is given sufficient opportunity to respond. Furthermore, the authority must inform the division bench of the court before taking any further action related to the outcome of this proceeding, as it is involved in the related writ appeal (W.A. No. 4789/2016).

Case Title: XXX   v. ICC, ANI Technology Pvt Ltd and Others