Karnataka has banned taxi-hailing service Ola Cabs for six months for violating government rules by running motorcycle taxis.
"Despite repeated warnings, Ola was misusing the licence granted by the authorities. Bike taxis are not allowed in Karnataka according to government policy," a senior official with the state's transport department said on condition of anonymity.
"So the decision was taken to suspend its licence for six months."
Several users in Bengaluru reported that they were still able to book an auto-rickshaw or taxi through Ola's app late on Friday.
Ola, backed by SoftBank Group Corp and Tencent Holdings Ltd and Uber's main rival