Central government seeks proof as contractors accuse Karnataka of seeking 40% commission

The contractors wrote to former chief minister BS Yediyurappa twice — in February and August 2020 — complaining about the issue, but in vain.

BySaurav Kumar

Published Jul 02, 2022 | 4:05 PMUpdatedJul 23, 2022 | 11:01 AM

Central government seeks proof as contractors accuse Karnataka of seeking 40% commission

In response to a letter written by Karnataka Contractors’ Association alleging a 40-percent commission being sought in return for government tenders in the state, the Central government has sought proof of this solicitation.

The association’s president Kempanna D told South First, “An official from the Ministry of Home Affairs has contacted the association and directed us to share the necessary documents and evidence of the issue. But due to some engagements and issues, the meeting has not happened yet.”

The visit of the official is in response to the letter sent on 6 July last year by the association, in which it alleged that ministers and legislators demand commissions to approve development projects in the state.

After BS Bommai replaced Yediyurappa as chief minister on 28 July, 2021, he dismissed the allegations, claiming there was no concrete evidence.

In April this year, the matter resurfaced because a contractor named Santosh Patil accused the Rural Development and Panchayat Raj Minister KS Eshwarappa and officials of soliciting kickbacks.

On April 12, Patil was found dead in a hotel in Udupi.

As a result, Eshwarappa had to tender his resignation.

The extent of the graft

Kempanna revealed, “Many files related to development projects, tender clearance and bills are pending due to the ignorance of the state officials. Bills worth ₹22,000 crore are pending. Despite the finance department and chief minister’s approval, our demands are not being met.”

He added: “Diktats of ministers, MLAs get fulfilled, but not the demands of contractors.”

According to him, the practice of asking for a commission has always existed.

“It used to be 1-2 percent, but later rose to 5-10 percent. But in 2019, seeking 40-percent commission became the norm,” he alleged.

Graft allegations against government

Facing an onslaught of bribes, contractors wrote to former chief minister BS Yediyurappa twice — in February and August 2020 — complaining about the issue, but no action was taken.

That’s when they approached the Prime Minister’s Office, seeking urgent action.

“While campaigning for the 2018 state Assembly election, the prime minister called the previous Congress regime a ’10-percent government’. But with facts and figures, we wrote to him stating that the bribe rate has increased to 40 percent,” explained Kempanna D.

Reacting to reports of the Central government seeking evidence of corruption, Karnataka Congress leader C Narayanaswamy told South First, “The information and evidence pertaining to corruption have been conveyed both to the prime minister and the chief minister in the past through letters, but necessary action is yet to take place.”

He added: “This proves the inability of the government to act against the corrupt ecosystem.”

BJP spokesperson MG Mahesh told South First, “The visit of the Central government official concerning the grievances of the contractors’ association is a positive sign in resolving the existing issues.