The Karnataka High Court on Monday directed ANI Technologies, the operator of OLA Cabs, to pay Rs 5 lakh in compensation to a woman who was sexually harassed by one of their drivers during a ride in 2019. In a decisive ruling by Justice M G S Kamal, the court also mandated that OLA’s Internal Complaints Committee (ICC) conduct a thorough investigation as per the Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013, commonly known as the POSH Act. The investigation must be completed within 90 days, with a detailed report submitted to the District Officer.
The court further imposed Rs 50,000 on ANI Technologies to cover the petitioner’s litigation costs and underscored the importance of maintaining confidentiality of all parties involved, in accordance with Section 16 of the POSH Act.
The legal action was initiated after the victim’s initial complaint to OLA’s ICC was dismissed on the grounds of jurisdiction, based on advice from external legal counsel. The woman subsequently sought judicial intervention, asking for an examination of her complaint by OLA and urging the Ministry of Women and Child Development to enforce compliance with POSH guidelines. She also called for the state to enforce regulations protecting women and children using taxi services.
Additionally, the court has tasked the Karnataka State Road Safety Authority with hastening its review of the notice issued to ANI Technologies, setting a 90-day deadline for this process. The state government has been fined Rs one lakh due to its insufficient response to the woman’s petition.
During the legal proceedings, the petitioner’s counsel argued that OLA, being a transportation service provider, should be accountable for the conduct of its drivers. Conversely, OLA’s legal defense maintained that the drivers are independent contractors, not direct employees, suggesting that the company should not be held liable under labour laws.
