Karnataka CM Siddaramaiah receives report on ‘40 per cent commission’ allegations

The '40 per cent commission' allegation had rocked state politics and became a major poll plank for the Congress, helping it wrest power from the BJP in 2023.

The Retired High Court Judge, Justice H N Nagamohan Das Commission, which was constituted to inquire into allegations of the '40 per cent commission' levelled against the previous BJP administration, submitted a 20,000-page report to Chief Minister Siddaramaiah on Wednesday.

Karnataka Chief Minister Siddaramaiah.(CMO )

The '40 per cent commission' allegation had rocked state politics and became a major poll plank for the Congress, helping it wrest power from the BJP in the 2023 Assembly elections.

According to an official release, the Karnataka State Contractors’ Association had filed a complaint alleging that more than 40 per cent of the commission was being charged in government tender works.

The association also requested an investigation into issues such as the abandonment of the package system, fixation of the Schedule of Rates (SR) list, implementation of the star rate system, ensuring transparency in tendering, bill payments based on seniority, and preventing the direct award of works to contractors through the Karnataka Rural Infrastructure Development Limited (KRIDL), it said.

The release stated that the commission conducted a detailed inquiry into these allegations and submitted its report accordingly.

Acknowledging that public statements and details were crucial in this probe, the commission thoroughly examined complaints received from the public, incorporating their suggestions and opinions in the report.

Along with investigating the contractors’ association’s allegations, the government also mandated an inquiry into all works carried out between July 26, 2019, and March 31, 2023, across five major state departments.

The commission scientifically selected completed works at random for investigation to ensure a fair review.

The investigation included file inspections, site inspections, and an audit of accounts. The final investigation report spans 20,000 pages, including appendices, it said.

The commission was set up in August 2023 with an initial three-month deadline to submit its report. In November 2023, the government extended the deadline to May 2024. Again, in July 2024, the government granted an extension until March 2025.

In a July 2021 letter to Prime Minister Narendra Modi, the Contractors’ Association alleged that contractors were required to pay a 25-30 per cent cut before starting civil works and an additional 5-6 per cent for post-work bill approvals.

The association also claimed that the 'package system' (bundling multiple works together) favoured contractors from outside Karnataka.