Several platform aggregators as well as 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 and allied rules.
The writ petition - filed by IAMAI along with Eternal Ltd, Zepto, Swiggy, Urban Company and Valmo Transportation - also seeks quashing of a series of notices issued by the Chief Executive Officer under the Act directing platform companies to implement various statutory obligations, including constitution of Internal Dispute Resolution Committees (IDRCs), payment of welfare fees and furnishing of information.
The matter is yet to be listed before the High Court.
According to the petitioners, the Parliament of India enacted the Code on Social Security, 2020 (COSS) to consolidate labour welfare legislation and establish a uniform national framework governing social security for all categories of workers, including gig and platform workers.
The Code, it is submitted, comprehensively provides for identification of gig workers, formulation of welfare schemes, aggregator contributions and the regulatory framework for implementation.
Despite the comprehensive central framework, the Karnataka government enacted the Karnataka Platform Based Gig Workers (Social Security and Welfare) Act, 2025, creating substantially similar welfare structures, imposing additional financial liabilities on aggregators and establishing parallel regulatory mechanisms.
The petition contends that the State enactment directly conflicts with the Central Code, resulting in operational inconsistencies and attracting the doctrine of repugnancy under Article 254 of the Constitution.
It argues that once Parliament has occupied the legislative field relating to social security for gig workers, the State cannot establish an inconsistent parallel statutory regime.
Apart from the parent legislation, the petition also challenges the Karnataka Platform Based Gig Workers (Social Security and Welfare) Rules, 2025, the notification constituting the Karnataka Platform Based Gig Workers Welfare Board and the Government Order dated February 12, 2026.
The petition further assails notices dated May 21, 2026, directing platform companies to constitute Internal Dispute Resolution Committees under Section 22 of the Act read with Rule 26 of the Rules.
It also challenges show-cause notices alleging non-cooperation in implementation of the Act, including failure to constitute IDRCs, failure to respond to communications relating to onboarding and use of software for payment of welfare fees and failure to furnish information sought by the authorities.
The challenge also extends to welfare fee notices dated June 22, 2026, requiring aggregators to pay welfare fees under Section 20 of the Act and submit proof of payment along with prescribed returns by July 5, 2026.
Besides alleging repugnancy with the Central legislation, the petition contends that the Act and Rules are arbitrary, violate Article 14 of the Constitution and infringe other fundamental rights guaranteed under Part III.
The petitioners have sought a declaration that the Act and Rules framed thereunder, the notification constituting the Welfare Board and the Government Order dated February 12, 2026 are unconstitutional.
They have also sought quashing of all consequential notices, including directions relating to constitution of IDRCs, show-cause notices and welfare fee demands issued under the impugned statutory framework.
The petitioners are represented by Advocates P Chinnappa, Arvind Krishna, CMS IndusLaw.