In Karnataka, one of the most lucrative markets for app-based cab aggregators, Uber is involved in a court tussle with the state government, which could have ramifications for what happens in the rest of India. Uber is challenging Karnataka’s decision to treat aggregators as transport operators, instead of claiming it to be a technology platform. Karnataka has also banned surge pricing, a key element of the aggregators’ business strategy. Transport Ministertellsthat he wants multiple aggregators in the state and that the ban on surge pricing is nonnegotiable. Edited excerpts:Uber is uncomfortable only with our restrictions on surge pricing. During morning hours, they want to charge five times (the regular fare) to the airport. They want more during peak hours and when it rains. But we want them to collect fares within the upper limit that we have fixed. They cannot collect from people travelling to the airport as much as the airfare itself. However, we are waiting for the high court’s view on this.The fundamental point that I wish to make here is that they have entered Bengaluru knowing fully well that it is a fare-regulated market. The government regulates fares for autos and taxis. How can we create a separate rule for Uber? How can they enter a regulated market and insist that they be exempt from regulations? If I have to concede to Uber’s demand, I will have to first ease fare restrictions for autos and taxis. But will that be fair to consumers?Uber claims that surge price helps them address the demand-supply gap. But we feel, and have informed the High Court, that this will only create artificial scarcity. Today we hardly see any metered taxis. The cabs are affiliated to one aggregator or the other. If aggregators start collecting a surge price and dictating fares, you can imagine the consumer’s plight.In what way are they outdated? They are new. We are the first state to notify the rules, and other states are studying it. The subject was also discussed at the recent meeting of the group of state transport ministers. Similar regulations may come into force all over India.That is not our area. We want to do only a facilitator’s job. Our aim is to encourage private players. Our desire is to see multiple aggregator platforms rather than a duopoly of Uber and Ola . We want many players to come and offer their services within the ambit of our rules. We want to create a competitive environment so that members of public get good service at competitive fares.The arguments are going on in the high court. Uber has raised some issues. We are of the view that licensing is nonnegotiable, surge-price restrictions are non-negotiable. Other small issues such as the need to issue printouts of bills to commuters, display of taxi board etc., we may consider.The government of India is in the process of notifying panic button and GPS as compulsory tools in all passenger-transport vehicles. If the vehicle has a 12+1seating capacity, then they will also need to have a CCTV camera. We are not going back on this.