What Is Karnataka’s ‘40% Commission Scam’? Inquiry Panel Finds No Proof, Minister Hints At More Evidence

The ‘40 per cent commission' allegation had become a major political flashpoint in the run-up to the 2023 Assembly elections.

The 'PayCm' campaign of Congress was based on the ‘40 Per Cent Commission’ row.

Source : X

The ‘40 per cent commission’ controversy in Karnataka, which played a significant role in the BJP’s electoral defeat, has taken a new turn as the inquiry commission has reportedly found no concrete proof of the alleged kickbacks. However, Karnataka Home Minister G Parameshwara has clarified that only an interim report has been submitted and that the final findings may contain additional evidence.

What Is ‘40 Per Cent Commission’ Row?

The ‘40 per cent commission' allegation had become a major political flashpoint in the run-up to the 2023 Assembly elections. The Karnataka State Contractors’ Association had written to Prime Minister Narendra Modi and former Chief Minister Basavaraj Bommai in 2021 and 2022, claiming that contractors were forced to pay bribes amounting to 25-30 per cent of the project cost before securing government tenders.

An additional 5-6 per cent was allegedly required to clear payments once the work was completed. The association also accused the BJP government of favouring large firms from outside Karnataka by bundling multiple projects together, leaving smaller local contractors at a disadvantage.

Ahead of polls, Congress leader Rahul Gandhi said, as per ANI, "BJP govt in Karnataka took 40% commission for whatever work they did. A letter was written to PM that 40% commission is being taken for every work, but he has not yet replied, it means that PM has accepted that 40% commission has been taken."

What The Inquiry Report Says? 

The Justice H N Nagamohan Das inquiry commission, set up to investigate these claims, recently submitted a 20,000-page report to Chief Minister Siddaramaiah. The findings highlight procedural lapses in the civil works carried out between July 2019 and March 2023, when the BJP was in power, as per a report on Deccan Herald. 

However, the commission has reportedly not found substantial evidence proving that BJP ministers, MLAs, or government officials directly demanded a 40 per cent commission as alleged.

The report also reportedly named two BJP MLAs, supporting claims of graft, as mentioned by The South First. 

'Final Report To Include More Evidence': Minister

Despite this, the report does not completely dismiss the possibility of corruption. Responding to questions about the findings, Home Minister Parameshwara stated that the interim report only presents evidence gathered so far and that further investigation may yield additional proof. 

The Minister said, as per PTI, "They (the commission) might have submitted the report based on the evidence they have gathered so far, but they may need to collect more. We (Congress) had made the 40 per cent commission charge against the BJP government during the assembly election campaign,

"The findings in the current report are based on the evidence available so far; the final report will incorporate any additional evidence they gather. This is only an interim report," he added.