Karnataka govt orders probe into '40 per cent commission scam'

The Karnataka government has ordered an inquiry into the allegations of demand for '40 per cent commission' for public projects during the previous BJP-led dispensation in the state. Three months after coming to power, the ruling Congress on Thursday passed an order setting up the inquiry panel led by retired HC judge Justice Nagamohan Das, fulfilling one of its key promises made in the run-up to assembly polls.

According to the order, the commission will inquire into the activities of the departments where large-scale public works are taken up. The Karnataka State Contractors' Association had written to the Prime Minister as well as the then CM about 40 per cent commission being charged on all public projects.

Even before the commencement of work, 25 to 30 per cent commission is paid to the public representatives while the remaining is paid after completion of work, the order explained.


"However, no action was taken on these serious allegations at the government level. The new government wants to bring transparency in the administration at the initial level itself," it said.

The commission will investigate whether administrative approvals were given as per rules and quality of works. The probe panel will also ascertain whether the estimates were in accordance with the prevailing schedule of rates and necessity to revise estimates in the event of cost escalation.

During the inquiry, the departments concerned will have to submit their files to the panel, it said. During the election campaigning, the Congress raised the issue of '40 per cent commission' to target the BJP government.