You can access the court order from here
The Karnataka High Court refused to stay the operation and implementation of the Karnataka Platform Based Gig Workers (Social Security and Welfare) Act, 2025. Justice M. Nagaprasanna also directed app-based service providers, including Eternal, Swiggy, Zepto, and Urban Company, to deposit with the court registry, within three weeks, the amount they are required to pay the state government under the Act as a “welfare fee.”
“The amount demanded by the State is not sought as charity, benevolence, or voluntary contribution. It is demanded pursuant to a statutory mandate flowing from a duly promulgated legislation. That legislation is presently under constitutional scrutiny before this Court,” Justice Nagaprasanna said.
At the same time, he said that no coercive action can be taken against app-based aggregators until the next hearing, scheduled for August 14, 2026.
The Internet and Mobile Association of India (IAMAI) and several aggregator platforms had filed a petition before the Karnataka High Court challenging the constitutional validity of the Act. The petitioners argued that the state legislation conflicts with the Centre’s Code on Social Security, 2020, and is therefore unconstitutional under Article 254 of the Constitution.
What are platforms saying? Senior Advocate CK Nandakumar and Dhyan Chinappa, appearing for the petitioners, argued that Karnataka’s Gig Workers Act encroaches upon the Central Legislation, which aims to ensure the welfare of all workers in unorganised sector, including gig workers.
The petitioners contended that while the Act took effect last September, the state government started to aggressively push for its implementation only recently. On multiple occasions, the platforms also urged the state authorities to reconsider the Act, arguing that it directly overlaps with the Code.
The platforms further argued that if they are required to deposit the welfare fee, it would result in a cash drain and adversely affect their profit-and-loss statements. Additionally, they pointed out that no welfare scheme has yet been framed to disburse the funds collected.
What did the Karnataka govt say? The state government contended that there is “no conflict” between the Centre’s Code on Social Security, 2020, and the state’s Gig Workers Act.
It argued that the platforms “cannot feign surprise” because, before the legislation was passed, they had participated in extensive deliberations concerning the welfare architecture for gig workers, including discussions on the welfare contribution payable for each ride undertaken by delivery personnel and riders.
The Karnataka Labour Department published the draft Bill in June 2024 and invited objections. IAMAI, which has challenged the state Act, submitted comments, as did the National Association of Software and Service Companies (NASSCOM).
“Having participated in such consultations, the petitioners cannot…
Source link
Disclaimer
We strive to uphold the highest ethical standards in all of our reporting and coverage. We blogs.grocliq.com want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.
Website Upgradation is going on for any glitch kindly connect at [email protected]
