Zomato, Swiggy, Amazon & IAMAI challenge Karnataka gig worker welfare law in HC
Major platforms moved Karnataka HC against the Platform-Based Gig Workers Welfare Act, arguing its 1-2% welfare-fee levy duplicates the central social security code. The contested cess could cost aggregators INR 250-300 crore annually, affecting ~5 lakh gig workers statewide.
IAMAI, Zomato, Swiggy, Zepto, Amazon and others moved Karnataka HC challenging the state's Platform-Based Gig Workers Welfare Act, citing duplicate welfare-fee obligations conflicting with the central social security code, with potential annual cost impact on aggregators.
Why this matters
Zomato shifts from capital-markets momentum, having seen its IPO oversubscribed 1.05x on Day 1 led by retail investors, to regulatory friction as it contests Karnataka's gig worker welfare levy alongside peers.
Retail-company theme accelerating at +434100% QoQ.