Kochi: The division bench of Kerala High Court on Friday stayed the order of a single judge bench allowing private bus operators to collect the increased fare from passengers, in view of the COVID-19 situation.

The division bench headed by the Chief Justice S Manikumar stayed the order while considering an appeal filed by State Government against the bus hike.

Private buses will not incur losses if they charge old rates, the state government said. Bus owners were asked to lower the fares only after the lockdown relaxations came into effect, it added.

The Justice Ramachandran Commission appointed to study the issue has been asked to submit a report to the government in two weeks' time.

The government will have to take a decision based on the report in another two weeks, the court said.

In May, the Kerala government had agreed to a temporary increase in the bus ticket rate by 50 per cent and changed the minimum rate from Rs 8 to Rs 12. The buses were also asked to ply on the roads with only 50 per cent capacity.

The ticket fares which were raised in light of the lockdown restrictions were later revoked and buses were granted permission to carry passengers in all available seats.

But on June 5, a single bench of the Kerala HC stayed the government order revoking the hike. It was considering a plea filed by the All Kerala Bus Operators Forum.

The limits placed to standing passengers in buses and the low demand for public transport in view of the COVID-19 pandemic has taken a toll on the profits of private bus operators.