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The petitioners contended that the State legislation introduces a parallel scheme that contradicts the central welfare framework. Senior Advocates CK Nanda Kumar and Dhyan Chinnappa argued that the Karnataka Act is repugnant to the Code on Social Security, 2020 enacted by Parliament and therefore violates Article 254 of the Constitution. They asserted that the central code already comprehensively covers gig workers, platform workers and workers in the unorganised sector, and that virtually every provision of the State Act mirrors the central legislation.

Additional Solicitor General Arvind Kamath supported the petitioners’ position, stating that the State law directly conflicts with the provisions of the central Code on Social Security and should not be implemented while its constitutional validity remains under challenge.

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Representing the Karnataka government, Advocate General K Shashi Kiran Shetty opposed the petition. He submitted that there is no inconsistency between the central code and the State legislation. He highlighted that the petitioners had actively participated in consultations preceding the enactment of the law, including discussions on the quantum of the welfare contribution payable for each ride, and therefore cannot now challenge the statutory obligation.

The Court has directed the State government to file its statement of objections by 30 July 2026 and has posted the matter for further hearing on 14 August 2026. The interim order remains in effect subject to compliance with the deposit direction.

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