Court Stays Karnataka Government's Enquiry Into '40% Commission' On Contracts

The High Court of Karnataka has stayed a Government Order constituting a one-man enquiry commission led by retired High Court judge H N Nagamohan Das to investigate the allegations of the "40 per cent commission" in government contracts alleged by some contractors.

The State Government issued the said order on August 5, 2023, to probe the alleged commission in works allotted in the Urban Development, Water Resources, Minor Irrigation and Rural Development, Public Works and Panchayat Raj departments between 2019-20 to 2022-23.

Justice M Nagaprasanna who heard a petition filed by several contractors stayed the Government Order on December 7 stating, "Prima facie, it appears that the State is taking a different stand on the score of change in government. 

Unless the State would justify its action for issuing the impugned order or constituting a One-Man Enquiry Commission, all further proceedings shall remain stayed." 

A Special Investigating Cell has been constituted for the purpose of investigating and enquiry of all the works which has been challenged in the petition filed by Nikshep Infra Projects and 44 other contractors.

The Additional Government Advocate was directed to accept the notice for the Urban Development Department, Karnataka Government. 

The contractors have also made the Bruhat Bengaluru Mahanagara Palike (BBMP) as the second respondent in the case though no relief is sought from the civic body.

"BBMP has been made a party for the sake of completeness," the petition has claimed.

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