Telangana union moves HC to regulate app taxi fares and ensure fair driver wages

The Telangana Gig and Platform Workers Union (TGPWU) has approached the Telangana High Court, challenging the State government’s failure to regulate taxi fares, alleging that app-based aggregators are imposing arbitrary charges to the detriment of both drivers and passengers.

After hearing submissions, the court issued notice to the Telangana government.

The petition, filed under provisions of the Motor Vehicles Act, 1988, seeks directions for the government to fix and notify uniform fares for all contract carriages in the state under Section 67 of the Act.

Section 67 empowers state governments to regulate fares and freight for contract and stage carriages. This includes fixing minimum and maximum fares, as well as stipulating conditions under which such vehicles may operate.

TGPWU has also demanded the installation and verification of taximeters in such vehicles, in accordance with Section 74 of the Motor Vehicles Act, read with the Legal Metrology Act, 2009.

The union further urged the court to direct the government to establish a monitoring and enforcement mechanism for fare compliance, along with a grievance redressal system accessible to both drivers and passengers.

The matter was heard on 11 September by Justice K. Sarath. Senior Counsel L. Ravichander appeared for the union, while Advocate Mohammed Absar Ahmed filed the petition.

“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.

App-based taxi fares have been the subject of debate across Indian states, with drivers’ unions repeatedly raising concerns over pricing practices, surge fare mechanisms, and income volatility. Some states, including Karnataka, have notified fare structures for ride-hailing platforms, while others are yet to implement clear frameworks.