Swiggy, Zepto, Urban Company Challenge Karnataka Gig Workers Law in High Court
Swiggy, Zepto, Urban Company and IAMAI have challenged Karnataka's Gig Workers Act in the High Court, arguing it conflicts with central legislation and imposes unconstitutional compliance burdens.
SociapaHQ
Food delivery and quick commerce platforms like Swiggy, Zepto and Urban Company, along with the Internet and Mobile Association of India (IAMAI), have approached the Karnataka High Court challenging the constitutional validity of the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act, 2025, reported Bar and Bench.
IAMAI and a number of platform companies including Eternal Ltd and Valmo Transportation have filed the petition seeking the declaration of the legislation as unconstitutional and quashing of the rules, notifications and directions issued under the Act.
The companies have challenged the provisions that require platform operators to pay welfare fees, set up Internal Dispute Resolution Committees (IDRCs) and comply with the various reporting and operational obligations mandated by the state government.
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Legal Challenge:
The challenge follows recent notices by Karnataka authorities to aggregators to pay welfare fees and submit compliance reports by July 2026.
The petition’s main argument is that the Karnataka law does not comply with the Code on Social Security, 2020, which was enacted by Parliament to establish a uniform national framework for the welfare of gig and platform workers.
The petitioners argued that the central law has already provided for identification of gig workers, welfare schemes and contribution mechanism and therefore a separate state framework is unnecessary and legally inconsistent.
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Constitutional Challenge:
According to the petition, the state of Karnataka has formed a separate welfare board and imposed additional compliance obligations, creating a parallel regulatory regime, which has caused increased financial liabilities and operational complexities for the platform companies.
They say the law contravenes the constitutional principle of repugnancy under Article 254 which deals with conflict between central and state laws.
The petition also challenges the constitution of the Karnataka Platform-Based Gig Workers Welfare Board, rules framed under the Act and a government order dated February 12, 2026, alleging that the state has exceeded its legislative competence.
The companies have also contested various notices issued by authorities such as directions regarding setting up of Internal Dispute Resolution Committees, allegations of non-compliance and orders to set up systems for managing welfare contributions.
The petitioners also alleged that the Act and its enforcement are arbitrary and violate fundamental rights, including Article 14 of the Constitution which guarantees equality before the law.
