Justice Suraj Govindaraj of the Karnataka High Court has recused himself from hearing writ petitions contesting the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act, 2025, citing a potential conflict of interest related to a petition filed via IndusLaw.
- Justice Govindaraj recuses over potential conflict of interest
- Industry petitions challenge constitutionality of Karnataka's gig worker welfare law
- Concerns over overlapping contributions and unclear fee adjustment mechanisms
What happened
Justice Suraj Govindaraj of the Karnataka High Court recused himself from hearing multiple writ petitions challenging Karnataka’s 2025 gig worker welfare law. The judge stepped aside because one of the petitions was filed through a firm called IndusLaw, which led to a potential conflict of interest. Although counsel for the petitioners did not object to his hearing the case, Justice Govindaraj remained firm on his decision.
As a result, the case will be reassigned to another judge for further proceedings. The petitions criticize the state’s legislation, which mandates platform-based companies to contribute a percentage of their commission to a welfare fund for gig workers, raising questions about the law’s consistency with existing national frameworks.
Why it matters
The Karnataka gig worker welfare law requires e-commerce and platform aggregators to pay 1% of their commission, capped, into a welfare fund designed to provide social security benefits to gig economy workers. Several key players in the gig sector, including IAMAI and companies such as Swiggy, Uber, and Zomato, are challenging the law’s validity, arguing it conflicts with the national Code on Social Security enacted in 2020.
A central concern is the absence of a clear mechanism to reconcile contributions made under the Karnataka law with obligations established under the national legislation. Without an officially notified system for adjusting these welfare fee contributions, the petitioners fear facing duplicate financial burdens, which could affect the sustainability of their operations and the implementation of gig worker benefits.
What to watch next
The reassignment of the petitions to another judge will determine the timeline for hearing further challenges against the Karnataka gig worker welfare law. The court's eventual ruling will clarify the law’s constitutional standing and address the dispute over overlapping financial obligations imposed on platform operators.
Additionally, the ongoing dialogue between the state and central governments regarding the mechanism for contribution adjustment and formal notification of welfare schemes for gig workers remains critical. Stakeholders will closely monitor these developments to assess how regulatory compliance and gig worker protections evolve across India’s key digital economy hubs.