Karnataka HC Won't Stay Gig Workers Act, Orders Swiggy, Zepto, Eternal to Deposit Welfare Levy

Karnataka High Court refused to halt the state's Gig Workers Act, directing platforms including Swiggy, Zepto, Eternal, Urban Company and Valmo to deposit disputed 1% welfare contributions within three weeks. The ruling threatens to lift operating costs and could set a compliance template for gig-economy players nationwide.

— Filed Sun, 5 Jul, 2026, 17:14 IST · Source Inc42 · Updated

Karnataka HC refused to stay the state's Gig Workers Act, directing platforms like Swiggy, Zepto, Eternal, Urban Company and Valmo to deposit disputed 1% welfare contributions. Ruling could raise operating costs and reshape gig-economy compliance across India.

Why this matters

Follows earlier interim relief granted to Swiggy, Zepto and Eternal on the welfare fee, now reversed as the HC orders deposits within three weeks. Signals hardening regulatory stance on gig-worker levies as food delivery volumes accelerate.

Retail-company signals accelerating at +566900% QoQ.

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