Bengaluru: The high court granted interim protection to app-based platforms challenging the constitutional validity of Karnataka Platform-based Gig Workers (Social Security and Welfare) Act, 2025, while directing them to deposit the disputed welfare fee for the second quarter with the court within three weeks.The petitions were filed by Internet and Mobile Association of India (IAMAI) and platform companies such as Eternal Ltd, Zepto, Swiggy, Urban Company, and Valmo Transportation.The court directed the state to file its objections by July 30 and posted the matter for hearing on July 31. It also ordered that no coercive action be taken against the petitioners until then.Appearing for the petitioners, senior advocates Dhyan Chinnappa and CK Nandakumar argued that the state law encroaches upon a field already occupied by the Centre through the Code on Social Security (COSS). Since labour is in the Concurrent List, they contended that the Karnataka law is repugnant to the central legislation and is therefore hit by Article 254 of the Constitution.The petitioners also sought a stay on the show-cause notices issued under the Act, which came into force on Sept 11, 2025.Advocate general Shashikiran Shetty, representing the state, argued that there is no conflict between the central and state laws. He submitted that the platforms had actively participated in consultations before the law was enacted, including discussions on the welfare contribution payable for each ride or delivery.Under the Act, he said, welfare fees are fixed at 50 paise per delivery by two-wheelers, 75 paise for three-wheelers, and Re 1 for four-wheelers. The amount is to be credited to a welfare fund administered by the Karnataka Platform-based Gig Workers Welfare Board.Similar laws elsewhereThe advocate general further submitted that similar laws have been enacted in Rajasthan (2023), Bihar and Telangana (2024). The petitioners, however, argued that those laws have not yet been implemented.Appearing for the Centre, additional solicitor general Arvind Kamath supported the challenge, contending that the Karnataka Act is directly hit by Article 254 as several of its provisions mirror those contained in COSS. He argued that the state law cannot operate in the face of an existing central enactment.After hearing the parties, Justice Nagaprasanna directed the petitioners to keep the disputed welfare fee in a separate account until it is deposited before the court. The platforms must furnish account details within a week, and the money cannot be used for any other purpose, so that it remains available for disbursal depending on the court’s final decision.The petitions also challenge the Karnataka Platform-based Gig Workers (Social Security and Welfare) Rules, 2025, the notification constituting the Karnataka Platform-based Gig Workers Welfare Board, the govt order dated Feb 12, and show-cause notices alleging non-compliance with the Act, including failure to constitute internal dispute resolution committees, integrate software for welfare fee payments, and furnish information sought by authorities.
