‘40 per cent commission’ scam returns to haunt BJP in Karnataka

The Congress government in Karnataka is all set to order a detailed investigation to determine charges that the just ousted BJP government thrived on charging “40 per cent commission” on almost all tenders and contracts.

The issue hugely embarrassed the Bharatiya Janata Party, whose leaders kept denying the allegations, and played a role in its rout in the assembly elections in May, ending the BJP’s only government in southern India.

It is learnt that Chief Minister Siddaramaiah will be asking for a judicial inquiry into the scandal. He will most probably make the request during the Budget session of the state assembly which starts on July 7.

Also read: ‘40% corruption’ ad: Bengaluru court issues summons to Rahul Gandhi, Siddaramaiah

Siddaramaiah last year sought an inquiry by a retired judge of the High Court or the Supreme Court when Basavaraj Bommai was the chief minister.

The “40 per cent commission” scam led the Congress to launch a ‘Pay CM” campaign against Bommai, catching people’s imagination and further undermining the BJP.

Contractors furious

Recently, D Kempanna, president of the Karnataka State Contractors Association, met Siddaramaiah to discuss various issues including the ‘40 per cent” scandal which it had raised in a big way.

Also read: Karnataka: Why BJP-JD(S) alliance looks certain for the 2024 Lok Sabha polls

Last year, Kempanna had sought Siddaramaiah’s help when the latter was the opposition leader in the state assembly.

On Tuesday, Siddaramaiah said his government will order an inquiry into the various scams of the previous BJP government, including the charge of levying “40 per cent commission” on various contracts,

D Kempanna told The Federal that he discussed the issue with Siddaramaiah.

Also read: BJP’s post-mortem of Karnataka loss betrays numerous cracks within

“I met the Chief Minister seeking the release of the pending bills of the contractors. I raised the issue of ’40 per cent’ also. The Chief Minister assured us about going for an inquiry.

“We want a judicial inquiry. Siddaramaiah has assured us a proper investigation on the issue,” he added.

Contractor suicides

Informed sources said the four issues connected to the 40 per cent scandal before the government include documents submitted by KSCA, a letter written by a former BJP minister and suicides by two frustrated contractors.

Also read: MLA Virupakshappa hands Karnataka Congress ‘proof’ of 40% commission charge

Kempanna had submitted several documents to Siddaramaiah when he was the opposition leader. The association has around 1 lakh members who also wrote two letters to Prime Minister Narendra Modi in July and November 2021.

The allegation is that the contractors were told to give kickbacks for getting work, particularly in the irrigation, public works as well as rural development and panchayat raj departments. Money was not released otherwise.

Reportedly, some Rs 22,000 crore worth of payments are pending from all these departments.

Also read: Karnataka Lokayukta arrests BJP MLA’s son for taking ₹40L bribe, recovers ₹8 crore in raids

Just before the elections, former BJP MLA Goolihatti Shekhar alleged corruption against the BJP government’s tender release of Rs 18,000 crore issued by several government-run corporations and boards.

He had written to the Additional Chief Secretary of the water resource department.

The demand for corruption money forced two contractors to commit suicide. The judicial inquiry will also cover the suicides, which had hugely embarrassed the former BJP government.

Also read: Political turmoil in Karnataka after contractor ends life, blaming minister

BJP woes

In one case, BJP worker Santosh K Patil, a contractor, was found hanging in Udupi in April 2022 after he made allegations against former rural development and panchayat raj minister KS Eshwarappa.

The allegation was that the minister harassed him for a 40 per cent commission for works of Rs 4 crores done in Hindalga village of Belagavi district.

Before his death, Santosh, a public works contractor from Koppal, wrote a letter to Prime Minister Modi alleging that the executive and junior engineers were among those demanding money to release his payments.

Also read: Contractor suicide: Eshwarappa says it’s a political conspiracy; refuses to resign

This incident forced Eshwarappa to quit the Bommai government. However, the police gave a clean chit to the former.

In another case, a PWD contractor, TN Prasad, committed suicide in Tumkuru January 1 this year.

According to the police, Prasad’s relatives alleged that his inability to get his bills cleared by the government after he completed the smart city project by taking a huge loan may have compelled him to kill himself.