Rapido Founders Booked for Unlicensed Bike Taxi in Nagpur

The founders of ride-hailing app Rapido face a criminal case in Nagpur after a government transport official accused them of running petrol-powered bike taxis without the required permits. A case was registered at Sitabuldi police station against Rishikesh S R, Pavan Guntupalli, and Aravind Sanka, the founders of Roopen Transportation Services Private Limited, which operates the Rapido app. The complaint came from Nagpur city RTO inspector Vishal Madhukarrao Bhovte on behalf of the state government, he said.

According to the complaint, the RTO conducted a special drive against illegal passenger transport on June 23. A bike ride was booked through the Rapido app from Ravi Bhavan to Priyadarshini Colony for ₹22, the official said. The bike reached the pickup point and was later brought to the RTO office for inspection. It turned out to be a private two-wheeler used without a licence or permit. The vehicle was seized, and charges were filed under sections of the Motor Vehicles Act, the Bharatiya Nyaya Sanhita, and the Information Technology Act.

The complaint specifically alleges that Rapido never received approval from the Maharashtra government or the Regional Transport Authority to operate petrol-powered bike taxi services. The state had earlier allowed only electric bike taxis under pilot programmes in some cities. Nagpur now appears to enforce the existing rules strictly. The complaint contends the company encouraged using private vehicles for commercial passenger transport, violating transport rules, putting passenger safety at risk, and causing financial loss to the government.

For Rapido, the legal trouble adds operational uncertainty. The company last raised $120 million in 2022 from Swiggy and others at a valuation around $800 million. A criminal case in one of India's largest states could slow expansion, shake driver confidence, and complicate future fundraising. If the case triggers a broader suspension of bike taxi services in Maharashtra, the revenue hit would be material. The company has not publicly commented on the Nagpur case.

The read-through extends beyond Rapido. Ola, Uber, and smaller players depend on bike taxis in congested cities. A tight regulatory environment, especially after a criminal case, could push the entire segment toward EV-only fleets faster than planned. The Nagpur complaint targets petrol-powered bikes specifically. The path to compliance is clear: switch to electric or obtain permission. Neither is simple at scale.

A court stay, a temporary permit from Maharashtra's transport department, or a public statement from Rapido seeking proper authorisation would reduce the risk. Similar cases in other cities or a state-wide ban on bike taxis would make it worse. The Sitabuldi police station official said further investigation is underway.